Nettles v. Marco

Citations

• 33 S.C. 47
• 11 S.E. 595
• 1890 S.C. LEXIS 100

Syllabus

<p>1. In suit against a stockholder for his unpaid subscription of stock, he should be allowed credit for his subsequent advances to the corporation, even though not credited on his subscription account on the books of the company.</p> <p>2. After the organization of a tramway corporation and the full payment of the minimum amount of stock as provided by the charter, a stockholder, under a resolution to extend the road, and for that purpose, signed an agreement to increase his stock subscription, payable partly in lumber and partly in money. Ho accordingly advanced more than the amount payable in money, and also made other advances; after which the directors abandoned the proposed extension, released such stockholder from his agreement, and recognized the advances so made as a debt: and this debt was subsequently reduced to judgment. Held, that the action of the board of directors was legal, and that a receiver of the corporation was not entitled to recover any part of the subscription so conditionally made after the organization of the company, and after the debts of the company had been contracted.</p> <p>3. Where one subscribes stock payable in lumber to a corporation, already fully organized, it seems that no judgment for money should be had against such subscriber — at least until it is shown that he had failed to comply with his contract, according to its terms, after reasonable opportunity so to do.</p>