Stewart v. Gould

Citations

• 8 Wash. 367
• 36 P. 277
• 1894 Wash. LEXIS 69

Syllabus

<p>CORPORATIONS — PROMISSORY NOTES OP — PLEDGE OP STOCK TO SECURE — RIGHTS OP CORPORATION CREDITORS.</p> <p>Although the note oí a corporation may have been given without any consideration for its execution, a bona fide purchaser thereof for value, to whom certain shares of the capital stock of the corporation were assigned to secure its payment, is a corporation creditor.</p> <p>Although a stockholder,, after a pledge of any or all of his stock, is, under § 1509, Gen. Stat., authorized to represent the same at all meetings and vote as a stockholder, and although he is the owner and holder of the balance of stock remaining after such pledge, yet he would not be authorized to transfer or dispose of the property of the corporation to secure an individual indebtedness to the prejudice of corporation creditors.</p>