People's Bank v. Gridley

Citations

• 91 Ill. 457

Syllabus

<p>1. Corporation—transfer of shares of stock as between the immediate parties, and as to third persons. Where the board of directors of a corporation are expressly empowered by the charter to provide for the mode of transfer of shares of stock, and the board does by a by-law provide that Such transfer shall only be made upon the books of the secretary on the presentation of the stock certificates properly indorsed, a transfer by indorsement and delivery only, will not be valid as against a creditor of the assignor who levies his execution upon such shares without notice of the transfer.</p> <p>2. As between the vendor and vendee of shares of stock in a corporation whose charter or by-laws require transfers of stock upon the books of the corporation, a sale and transfer will be good without being entered upon the com-, pany’s books, and will be enforced in equity, and the vendee required to pay subsequent assessments or indemnify the vendor against their payment.</p> <p>3. The provisions of the statute making shares of stock in a private corporation subject to levy and sale on execution, contemplate that, as against a judgment creditor, the title to stock in such corporation can only pass by transfer on the books of the company.</p>