Coit v. Gold Amalgamating Company - 119 U.S. 343 (1886)
U.S. Supreme Court
Coit v. Gold Amalgamating Company, 119 U.S. 343 (1886)
Coit v. Gold Amalgamating Company
Argued November 18-19, 1886
Decided December 6, 1886
119 U.S. 343
Where the charter of a corporation authorizes capital stock to be paid for in property, and the shareholders honestly and in good faith pay for their subscriptions to shares in property instead of money, third parties have no ground of complaint.
A gross and obvious overvaluation of property conveyed to a corporation in consideration of an issue of stock at the valuation is strong evidence of fraud in an action against a stockholder by a creditor to enforce personal liability for his debt.
This was a bill in equity against a corporation and its stockholders to enforce a debt due from the former against the latter. The case is stated in the opinion of the Court.