Diamond Rubber Co. v. Fohey
Mississippi Supreme Court
Diamond Rubber Co. v. Fohey, 111 Miss. 654 (Miss. 1916)
71 So. 906
Smith
Diamond Rubber Co. v. Fohey
Opinion of the Court
delivered the opinion of the court.
We are of the opinion that a corporation is not so defectively organized as to render its stockholders liable for the debts thereof as partners or otherwise, although: (1) Its charter is not recorded in the office of the chancery clerk of the county in which it does business; and (2) it commenced and continued to do business with a capital stock, subscribed and paid in, less than the full amount thereof authorized by its charter, such charter not requiring a certain amount of capital stock -to be paid in before it can commence business.
Affirmed.
Reference
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- Syllabus
- Partnership. Liability of stocleholSers. Defective organisations. A corporation, is not so defectively organized a? to render its stockholders liable for the debts thereof as partners or otherwise although, first, its charter is not recorded in the office of the chancery clerk of the county in which it (Joes business, and second, it commenced and continued to do business with a capital stock, subscribed and paid in less than the full amount thereof authorized by its charter, such charter not requiring a certain amount of capital stock to be paid in before it can commence business.