Force, Bros. & Co. v. Dahlonega Tanning & Leather Manufacturing Co.
Force, Bros. & Co. v. Dahlonega Tanning & Leather Manufacturing Co.
Opinion of the Court
By the Court.
delivering the opinion.
The former is in these words :
“An Act to incorporate certain persons under the name and style of the Dahlonega Tanning and Leather Manufacturing Company.
Whereas, David H. Mason, John D. Field, junior, James J. Field, Benjamin F. Swanton and Zelotes H. Mason, of the town of Dahlonega and county of Lumpkin, have formed themselves into a company, by the name of the Dahlonega Tanning and Leather Manufacturing Company, for the purpose of tanning and manufacturing the leather into the various articles to which leather is applicable, and the dressing and manufacture of furs: and whereas, for the more conveniently carrying on the operations of said Company the said persons desire an act of incorporation :
Sec. 2. And be it further enacted by the authority, aforesaid, That the private property of the stockholders be bound for the payment of the debts of the Company.
Sec. 3. And, be it further enacted by the authority,afore
Sec. 4.- And be it further enacted by the authority aforesaid, That nothing in this corporation shall beso construed as to authorize said corporation to use and exercise Banking privileges.”
The following is the latter act:
“ An Act to facilitate the'collection of Debts against Incorporations and the Stockholders thereof.
Section 1. Be it enacted by the Senate and House of Representatives of the State of Georgia, in General Assembly met, and it'is hereby enacted by the authority of the same. That it shall and may be lawful' for plaintiffs or complainants, within one month after the institution of any suit or suits at law or equity against any incorporation, joint stock or manufacturing company, to publish once a week for four successive weeks in some public gazette of this State, notice of the commencement of said suit or suits, and said publication shall operate as notice to each stockholder in said incorporation, joint stock or manufacturing company, for the purposes hereinafter mentioned.
Sec. 2. And be it further enacted by the authority aforesaid, That when notice has been given as aforesaid, and a judgment or decree has been obtained against any incorporation, joint stock or manufacturing company, where the individual or private property of the stockholders is bound for the payment of the whole or any part of the debts of said company, execution shall first issue against the goods and chatties, lands and tenements of said company; and upon the return thereof by the proper officer,.with the entry “ no. corporate property to be found” endorsed thereon, that then, and in that case it shall be the duty of the clerk or other officer, upon application of the plaintiff, his agent or attorney,
Sec. 3. And be it further enacted by the authority aforesaid, That it shall be the duty of the president or presiding officer, by whatever name he may be designated, upon application of the plaintiff, his agent or attorney, forthwith to give a certificate, under oath, of the names of the stockholders in said company, and the number of shares owned by each at the time of the rendition of the judgment against said company.
Sec. 4, And be it further enacted by the authority aforesaid, That if upon application by the plaintiff, his agent or attorney, to the president or presiding officer as aforesaid, he shall refuse to give a certificate as aforesaid, or shall abscond or conceal himself to avoid giving the same, and oath being made by plaintiff, his agent or attorney of said refusal, the clerk or other officer is hereby required to issue execution against said president or presiding officer as aforesaid, for the amount of principal, interest and costs of said suit.
Sec. 5. And be it further enacted by the authority aforesaid, That if the president, directors or other officers of said company shall fail or refuse to defend said suit or suits, brought as aforesaid, any one or more of the stockholders of said company shall be permitted by the Court, before which said suit Or suits is pending, to plead to and defend the same in as full and ample a manner as said company in its corporate character could plead to and defend the same.
Sec. 6. And be it further enacted by the authority aforesaid, That the defendant or defendants in execution, under the provisions of this act, shall be entitled to an illegality, under the same rules, regulations and restrictions as defen
Sec. 7. And be it further enacted by the authority aforesaid, That this statute shall be understood and construed as cumulative of the common law; and that all laws and parts of laws militating against the same, and this construction thereof, be, and the same are hereby repealed.”
Did the Assembly intend by this last Act, to supersede or repeal so much of the charter of the Tanning and Leather Manufacturing Company as militated against its provisions ?
It is unreasonable to suppose that the same body of men, should at the same session and within six days, either directly or by implication, do such a thing. By the charter, the stockholders are made liable as partners; and upon a judgment rendered against the corporation only. By the general law, a pro rata liability only is created; and a very different mode is prescribed for enforcing it.
Our conclusion is, that the last act is applicable only, perhaps, and was so intended, to those incorporations which made their members individually bound, though ratably only, for the corporation debts, and which do not contain, within themselves, a summary remedy for enforcing this personal liability, and that this general statute does not repeal the special act passed at the same session, upon the same subject.
That Mr. Mason was one of the original stockholders, is not denied. The act of incorporation recites the fact that the charter was granted to him and others therein named. He
The 2d section of that act declares that, “where the stockholders in any bank or other corporation are individually responsible under the charters thereof, and any such stockholder shall transfer his or her stock, he or she shall be exempt from all liability for the notes and contracts of such bank or other corporation, unless he or she receive written notice from any creditor thereof within six months after such transfer (in which case he or she shall not be exempt from such creditor’s claim.) Provided, such stockholder shall give notice once a month for six months, of such transfer immediately thereafter, in two newspapers in or nearest to theplace where such bank or other corporation shall keep the principal office,” Cobb 112.
Under this act it would seem, the defendant is liable as a stockholder, unless he alleges and proves that he has discharged himself according to the provisions of this statute.
Judgment reversed.
Reference
- Full Case Name
- Force, Brothers & Co., in error v. The Dahlonega Tanning and Leather Manufacturing Co., in fi. fa., and D. H. Mason, affiant in illegality, in error
- Cited By
- 2 cases
- Status
- Published