Mudgett v. Horrell
Before: Currey, Hhodes, Sawyer
Synopsis
Proof of bring Stockholder in Corporation.—If the entries in the stock and transfer book of a corporation are regarded as presumptive evidence that a person therein named a stockholder was such, the books are impeached and the presumption is overcome, if the evidence given orally by witnesses shows that he never accepted but refused to accept any stock in the company.
Stockholder in Corporation.—One who never accepts but refuses to accept any stock in a corporation, is not a stockholder, even though the Secretary enters his name in the books as such.
By Currey, C. J., ShAFTER, J., concurring : Stock Book of Corporation not Evidence.—The stock book of a corporation is not admissible in evidence in an action by a creditor of the corporation against one claimed to be a stockholder, for the purpose of proving that he is such stockholder.
Opinion — Currey
By the Court, Currey, C. J.: The defendant was sought to be charged as a stockholder in the Hamilton Quicksilver Company, a corporation organized under the laws of this State, (Hittell’s Gen. Laws, 932,) for his proportion, as alleged, of the debt due the plaintiff from the company. The action was upon two promissory notes made by the corporation—the one on the 30th of April, 1863, and the other on tire first of May, in the same year. Each of said notes was made payable six months after date, with interest at two per cent per month. The defendant traversed several of the material allegations of the complaint. He denied that he was ever a member of, or a stockholder in, said corporation. He denied that he was indebted to the plaintiff in any sum whatever on account of said corporation or otherwise. And he affirmatively alleged that said notes were given for and in consideration of debts which accrued when the defendant was in nowise connected with the company, as agent or otherwise.
The issue joined was tried before the Court without a jury, and the finding and judgment was in plaintiff’s favor. A motion for a new trial was afterwards made, which was denied, and then the defendant appealed.
There are two statements in the transcript certified to tins Court—that is to say, a statement on motion for a new trial, and a statement on appeal. The last was not served and filed within the time prescribed by law, and consequently must he laid out of view.
From the statement on motion for a new trial it appears that the plaintiff offered in evidence a hook called the “ stock hook,” in which, the Secretary of the company testified, a statement of the affairs and transactions of the corporation was kept. The defendant objected to the admission of this [28]book in evidence, on the ground that it was not such a book as the statute required to be kept. The objection was overruled. The Secretary, who was on the stand as a witness for plaintiff, was then shown a book of the corporation, called “ transfer book,” whereupon he stated that such transfer book was kept by him. The plaintiff then offered in evidence “ written transfer, on page five of said book, of twelve shares of Hamilton Quicksilver Company;” also, offered in evidence “ transfer of stock from page five of said book to page seventeen inclusive.” To the offered evidence the defendant objected, on the ground that the same was incompetent. What these entries were we are not informed with entire certainty. But the same were received in evidence for the purpose of sustaining the issue on the part of the plaintiff, and we are to presume the evidence so admitted tended at least to that conclusion, and if improperly admitted, operated, to the prejudice of the defendant.
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