Potter v. Dear

Citations

• 95 Cal. 578
• 30 P. 777
• 1892 Cal. LEXIS 868

Syllabus

<p>(Corporation — Unpaid Subscriptions to Stock — Creditor’s Bill to Esforcé Payment. —A judgment creditor who has exhausted his legal Remedies against a corporation may maintain a creditor’s bill against ene e? more stockholders to recover the amount due to the corporation npon unpaid subscriptions to its stock.</p> <p>Id. — Parties to Creditor’s Bill — Non-joinder of Corporation — Pleading — Waiver of Objection. — The corporation should be made a party to a creditor’s bill against subscribing stockholders, but is not an indispensable party, unless the object of the action is to secure an adjudication of the rights‘and liabilities of all the parties, and a final settlement of all the .affairs of the company; and when the action is against a single stockholder, objection to the non-joinder of the corporation is waived, if not made by demurrer or answer.</p> <p>.Id,—Jurisdiction of Equity —Legal Remedy against Stockholders — Insolvency of Stockholders not Joined. — A court of equity will entertain jurisdiction over an action by a judgment creditor who has exhausted his legal remedies against the corporation to compel payment of unpaid subscriptions to its stock, without regard to the exhaustion of any concurrent legal remedy against the stockholders upon their individual liability, and without regard to the insolvency of subscribing stockholders not joined as defendants.</p> <p>;Id.—Land and Improvement Company—Subscribed Capital Stock.— A laud aud improvement company, organized for the purpose of acquiring real property, by purchase or otherwise, buying and selling the same, building hotels, street.railroads, and otherwise developing lands, stands upon the same basis as banking, railroad, insurance, and like commercial corporations having a subscribed capital stock.</p>