A Treatise On Stock And Stockholders And General Corporation Law

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1889 edition. Excerpt: ...to issue new certificates of stock to a purchaser of stock at an execution sale unless such purchaser give to the corporation a. bond of indemnity, whereby an unknown purchaser of the outstanding certificate may be protected.' The other course open to the corporation, that of allowing a registry by the purchaser at the execution sale without being compelled to do so by a court, is pursued by the corporation at its peril. If it afterwards transpires that the outstanding certificate had been purchased before the attachment or execution was levied, the corporation is liable in damages to such purchaser for allowing the registry, ' but not unless such purchaser gave a valuable consideration for the certificate and alleges that fact in his pleading." Until such purchaser demands a. registry from the 1 " Where a judicial tribunal of competent jurisdiction of last resort, after a fair contest in good faith by the corporation, orders the stock to be transferred to the purchaser under such seizure and sale, the corporation cannot be liable to the holder of the certificate who took no. steps to protect himself." Friedlander 'u. Slaughter-house Co., 31 La. Ann., 523 (1879). Vhere, also, the unregistered transferee contested in the courts the right of the purchaser at the execution sale, and was defeated in the lower court, and appealed without staying the decree below, the corporation is not liable for obeying the decree of the lower court. although the appeal is successful. Chapman 12. New Orleans Gas Light, etc., Co., 4 La. Ann., 153 (18-19). flsee 359, ass. 3 The supreme court of Ohio, in Nat'l B'k of N. L. v. Lake Shore & M. S. R. R. Co., 21 O. St., 221 (1871), very properly and very...