Western Screw & Manufacturing Co. v. Cousley

Citations

• 72 Ill. 531

Syllabus

<p>1. Corporations—not liable for debts created before their organization. A. corporation, after its organization, is not liable for the payment of debts contracted previously thereto, without an express promise to pay them after acceptance and receipt of the benefit of that for wdiich they -were incurred.</p> <p>3. An attempt was made to organize an incorporation under the general law of the State, with a capital stock of §100,000. After a part of the stock was subscribed, the stockholders held a meeting and employed a superintendent to attend to work being done for the proposed corporation, which he commenced doing, but afterwards, when it was ascertained that the requisite subscription of stock could not be obtained, he quit work. Most of the stockholders afterwards formed another cornpany, with a capital stock of §50,000, for the same purpose of the first one, and completed tlieir organization and incorporation: Held, that, even if the first company had completed its organization, the superintendent could not have recovered against it for his services, much less against the new company.</p>