James W. Andrews & Co. v. Gwinnett Manufacturing Co.
James W. Andrews & Co. v. Gwinnett Manufacturing Co.
Opinion of the Court
It is true, that by the charter of the Gwinnett Manufacturing Company, the judgment obtained on a debt due by the corporation is first to be levied on the corporate property. But it is specially provided that the stockholders may be made parties to the suit, at least that the president of the company shall, upon notice, file, at the first term, a schedule showing the names of all the stockholders and the amount of stock held by each. When judgment is obtained it is the duty of the clerk to indorse on the execution a copy of said schedule, which is the guide to the levying officer in the collection of the same. The effect of this is to make the stockholders primarily liable to be sued, liable to have judgment rendered against them in proportion to their stock, although the corporate property is first to be levied on.
If the particular mode allowed by the charter is the only one by which a creditor can reach the stockholder, then, as in this case, if the president is unable to furnish the schedule, all remedy is gone. The charter expressly declares the stockholders to be “bound and liable for the payment of all the debts of the company in proportion to the amount of stock owned by each at the time the debt was contracted.” It is a declaration of joint liability, to-wit: of the. corporation and of the stockholders, and one method is given whereby it can be enforced. If that remedy is impracticable on account of the inability of the chief officer of the company, the right of the creditor still exists, and if a right then there must be a remedy. Indeed, if a liability exists on the part of the stockholders jointly with the corporation, and the levying of the execution on the property of the stockholders, is merely postponed until the corporate property is first taken, a right of action against both jointly exists in the creditor, and if the charter gives him some additional mode whereby he may enforce his right, it is a cumulative and not exclusive remedy, unless so declared, or is to be so construed by necessary implication : 42 Georgia, 435; 1 Kelly, 524; Code, section 3376.
Judgment reversed.
Reference
- Full Case Name
- James W. Andrews & Company, in error v. The Gwinnett Manufacturing Company, in error
- Cited By
- 1 case
- Status
- Published