German-American Mercantile Bank v. Foster
German-American Mercantile Bank v. Foster
Opinion of the Court
This action was instituted to recover from appellant $500 and interest as superadded liability accruing by reason of his’ ownership of five shares of the capital stock of the respondent hank, of the par value of $100 each. From a judgment as prayed for, this appeal is taken.
Appellant subscribed for, and became the owner of, the stock in question at the time of the incorporation of the bank in April, 1911. The hank was incorporated as
Nor would an honest error in judgment on the part of the bank examiner, if there was such, and the permitting of the absorbing of another banking institution, though loss followed, be a defense to this action.
All of the other points raised by appellant are decided against him in Hanson v. Soderberg, 105 Wash. 255, 177 Pac. 827. Still adhering, as we do, to the views therein expressed, a.rediscussion of the subject seems unnecessary.
Parker, C. J., Holcomb, Main, and Mitchell, JJ., concur.
Reference
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- German-American Mercantile Bank v. H. E. Foster
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- 2 cases
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- Syllabus
- Corporations (46)—Stock Subscriptions—Actions On—Amendments. A subscriber to tbe capital stock of a banking corporation would not be released by tbe amendment of its articles of incorporation so as to change its name and increase its capital stock for the purpose of absorbing the assets and assuming the liabilities of another bank, since such amendment did not end the corporate existence of the original bank. Same (46). An error in judgment on the part of the bank examiner in permitting one bank to absorb another, resulting in loss to the former, would not constitute a defense against the liability of a nonassenting stockholder in an action to recover on his subscription to the capital stock of the original bank.