Mann's Mercantile Co. v. Smith

Citations

• 107 Miss. 16
• 64 So. 929

Syllabus

<p>1. Corporation. Liability of directors. Debts exceeding capital stock. Courts. Terms of court. Civil terms. Code 1906, section 924. Laws 1910, chapter 105.</p> <p>Under Code 1906, section 924, providing that the amount of debts-which a trading corporation may contract shall not exceed the amount of its capital stock paid in, and in case the debts exceed that amount, the directors who contracted such debts shall be individually liable for the excess, the debts prohibited by this statute must be valid claims against the corporation, enforceable in the courts, and capable of being made a charge on the assets of the company.</p> <p>2. Same.</p> <p>In order to make a director liable for such excess it must be shown that the director sought to be charged with liability assents to, or contracted the debt officially as a director, acting-concurrently with a majority of the board.</p> <p>3. Courts. Term of courts. Civil terms. Laws 1910, chapter 105.</p> <p>Under chapter 105, Laws 1910, fixing the terms of court in Sunflower county and providing that the first twelve days of each term shall be for civil business and the last twelve days for criminal business, where a civil case was tried during the first twelve days, but a motion for a new trial in the case was decided in the last twelve days this was not error, since the division of time was for convenience, and in nowise limits the power of the court to try a case properly within its jurisdiction. A judge cannot however ignore the division of time, when to do so would deprive a party to a lawsuit of any substantial right.</p> <p>ON SUGGESTION OE ERROR.</p> <p>Corporations. Liability of directors. Debts in excess of capital stock. Code 1906, section 924.</p> <p>Under section 924, Code 1906, making directors of corporations individually • liable for debts of the corporation “contracted” by them in excess of the paid in capital stock of the corporation, in order to hold a director personally responsible, he must have been