Shannon v. Stevenson

Citations

• 173 Pa. 419
• 34 A. 218
• 1896 Pa. LEXIS 722

Syllabus

<p>Corporations — Subscription to stooh — Contribution of property and services — Act of April 29, 1874.</p> <p>Corporations in Pennsylvania have not only inherent power, but also statutory authority under the act of April 29, 1874, section 17, P. L. 81, to make a contract to purchase property or labor and pay for it in stock instead of money.</p> <p>In an action against an original subscriber to the stock of a corporation to recover an unpaid balance of an alleged cash subscription, it is proper to permit the defendant to offer evidence to show that the corporation' had agreed that if defendant would leave a position which he held, and become president of the company, the corporation would give him full paid stock of the company to the amount claimed in the suit.</p> <p>The proviso in section 17 of the act of April 29, 1874, P. L. 81, that no stock shall be issued “ except for money, labor done, or money or property actually received ” does not prevent payment for labor or services bona fide to be thereafter rendered.</p>