McKay v. Garman

Citations

• 89 Wash. 23
• 153 P. 1082
• 1915 Wash. LEXIS 989

Syllabus

<p>Corporations — Stockholders — Stock Subscriptions — Payment in Merchandise — Liability to Creditors. Where but ten thousand dollars of the capital stock of a fifteen thousand dollar mercantile corporation was subscribed for, five thousand dollars being held as treasury stock, and the subscribed stock was paid for by the transfer of $14,600 worth of merchandise, $10,000 of which was applied on the stock subscriptions of the owne'r of the merchandise and the other subscribers, members of his family, who gave notes to him for the amount of their subscriptions, the stock subscribed for was fully paid for, and the stockholders are not liable to creditors as upon an unpaid stock subscription.</p> <p>■Same — Commencing Business — Stock Not Subscribed — Liability of Officers. An officer and stockholder in a mercantile corporation is not liable to creditors from the mere fact that the company transacted business before the whole of the capital was subscribed, in violation of law, in the absence of an express statute imposing such liability; since only the state can complain thereof.</p>