Case ID: ga-app_8/html/0399-02.html
Source: Caselaw Access Project
Author: {"author": "Hill, C. J.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

2681.
    Beam v. Floyd County Farmers Union (Inc.).
    Decided November 11, 1910.
    Complaint; from city court of Floyd county — Judge Hamilton. March 28, 1910.
    
      M. B. Eubanks, for plaintiff in error.
    
      J. L. Johnson Jr., Lipscomb, Willingham é Wrighl, contra.
   Hill, C. J.

1. The capital stock of a corporation is a trust fund for the benefit of stockholders and creditors, and no officer of the corporation has authority to release any subscriber to the stock from payment of his subscription. Cartwright v. Dickinson, 88 Tenn. 476 (12 S. W. 1030, 7 L. R. A. 706, and cases cited in note, 17 Am. St. R. 910); Putnam v. New Albany etc. R. Co., 16 Wall, 390 (21 L. ed. 361).

2. The evidence demanded the verdict directed. Judgment affirmed.