Court Opinion

ID: 9868955
Source: CourtListenerOpinion
Date Created: 2023-09-26 19:09:23.370173+00
Date Added: 2024-06-11T07:45:57.650099
License: Public Domain

ON REHEARING.
Appellees, in their motion for rehearing, have called our attention to the clause in the agreed statement of facts stating that at the time of the filing of the charter those who had prior to that time acted as directors of the corporation continued in possession and control of- the property and assets of the Beaumont-Port Arthur Company, and contend that inasmuch as it is thus shown that the company did come into the possession of assets and property, the amount and value of which is not shown, the subscribers to the capital stock of the corporation are entitled on another trial to have the value of such property, when ascertained, credited upon their stock subscriptions. This contention, we think, is correct. The motion for rehearing will be granted to the extent of modifying our former opinion that it shall read as follows:
The judgment of the court below as to the Beaumont-Port Arthur Company and D. Woodhead is affirmed, but as to the appellees said judgment is reversed and remanded with instructions to the County Court to hear proof and ascertain the value of the assets paid by the subscribers to the corporation after the filing of the charter and to allow the subscribers credit upon their stock-subscriptions therefor; and if it be- found that such property was not, at the time it was so paid to -the corporation, of value sufficient to pay the par value of the stock subscribed for by them, then to render judgment against the solvent subscribers, and in favor of the Bank of De goto, for the difference between the value of the property so paid into the corporation and the par value of the stock subscribed for, not to exceed an amount necesary to pay appellant’s debt, interest and costs of suit. In ascertaining the value of such property, however, the court should take into consideration encumbrances thereon at the time it was paid into the corporation, if any, and allow as credit upon the stock subscriptions the difference between the value and the *111amount of the incumbrance. In all other respects the appellees’ motion for rehearing is refused.
It may be well to say, however, that any appropriation of the property paid by the subscribers into the corporation to pay debts incurred .before the filing of the charter would be a conversion of corporate property for which the directors so directing its use would be liable at the suit of the creditor of the corporation.

Affirmed in part and reversed in part.