Lazard Freres Et Cie v. Phetteplace
Lazard Freres Et Cie v. Phetteplace
Opinion of the Court
This is a bill in equity brought for the purpose of enforcing liability of stockholders for the debts of the ■corporation under section 1 of chapter 180 of the General Laws'.
The bill alleges that the complainants have obtained judgment against the Phetteplace Olive Oil Importing Company, .an incorporated manufacturing company, and that execution has been returned wholly unsatisfied; that the capital stock of said corporation was never fully paid in, and that no certificate was filed as required by section 1 of chapter 180 of the General Laws. ", '
To the bill certain respondents Lave demurred on the ground that, as the liability of stockholders for the debts of a corporation under section 1 of said chapter 180 'is limited by section 13 .as amended by chapter 839 to the number of shares paid up to the par value thereof, the bill should allege that the respondents have not paid for their stock up to the par value thereof.
One of thé respondents assigns as 'an additional cause of demurrer that .the bill does not allege the respondent to have been' an original subscriber for his stock. '
We think both these positions are untenable under our statute.
Section 1 of chapter 180 provides as follows: “The members of every incorporated manufacturing 'comphny shall be jointly and severally liable for all debts and contracts made and entered into by such' company,"' except as héréinafter provided, until the whole amount of the'capital stock fixed and limited by the charter of said company, or by vote of the company in pursuance of the charter or" of law, shall have been paid in and a certificate thereof shall have been made and recorded in a book kept for'that purpose, in the office of the town clerk of the town wherein the manufactory is established, and no longer, except as hereinafter provided.”
Section 13 as amended by chapter 839’ is as follows: “ Thé liability of members of an incorporated manufacturing company, *570 provided by section 1 of this chapter, and of the members of such corporation under other statutory provisions, for the debts of such company hereafter contracted or for obligations hereafter incurred shall be and hereby is limited to the shares of such members in such corporation paid up to the par value thereof.”
This limitation of liability under section 1 was first enacted April 20, 1876, Pub. Laws cap. 555, and has remained in force ever since.
The form of similar statutes in other States may impose upon the creditor the duty of proving the exact status of the stockholders; but as our law is worded, we do not so construe it. We think the statute contemplates that the creditor may bring his action when the certificate is not filed, and that individual equities are to be presented by the several defendants and adjusted in the trial of the suit.
The several demurrers are accordingly overruled.
Reference
- Full Case Name
- Lazard Freres Et Cie vs. William L. G. Phetteplace Et Al.
- Status
- Published