Perry v. Bank of Commerce

Citations

• 116 Miss. 838
• 77 So. 812

Syllabus

<p>1. Banks and Banking. Decreasing capital stoclc. ,</p> <p>Under Constitution 1890, section 88, the right is given to the legislature to create corporations and amend or change charters of corporations, and where the charter of the corporation itself provides that it may be amended by reading into it section 899, Code 1906 (Hemmingway’s Code, section 4071), permitting amendments, and the corporation so provides by its by-laws, as authorized under .section 901, Code 1906 (Hemmingway’s Code, section 4073), and where the majority of the stockholders pass a resolution for the amendment, properly petition for the same under the law, and the amendment is granted as authorized by the statute. Such amendment is legal and valid.</p> <p>2. Banks and Banking. Decreasing capital stoclc. Injustice to stoclcholder.</p> <p>An amendment to the charter of a bank reducing its capital stock from thirty-five thousand dollars to twenty-five thousand dollars does no injustice to a stockholder, where he is offered new stock under the amended charter which is of the same actual value, though a less number of shares, as the stock held by him in the bank before its capital stock was reduced by the amendment.</p>