Tibballs v. Libby

Citations

• 87 Ill. 142

Syllabus

<p>1. Corporation—liability of stockholder for corporate debt. A stockholder of an insurance company, subject to the general law of 1869, is liable for the debts of the company to the full amount of his stock, and he is not relieved of this liability by payment for his stock in full. Until the full capital stock is paid in, and a certificate of the fact made and recorded, he is liable to be sued for the debts of the company to the amount of his stock.</p> <p>2. Same—when under general law. If an insurance company, created by a special charter, increases its capital stock under the general law, this, in effect, is an incorporation under such law, and, by subscribing to such stock, the party will incur the liability imposed by the general law.</p> <p>3. Same—stockholder's liability not affected by bankruptcy of the company. The right of a creditor of a corporation to recover against a stockholder is not taken away by the bankruptcy of the corporation. That fact fixes his liability.</p> <p>4. Former decision. The case of Butler v. Walker, 80 111. 345, as to liability of stockholder of corporation under the law of 1869, is followed, and the opinion in that case adhered to.</p>