Bank of Fort Madison v. Alden - 129 U.S. 372 (1889)
U.S. Supreme Court
Bank of Fort Madison v. Alden, 129 U.S. 372 (1889)
Bank of Fort Madison v. Alden
Submitted January 4, 1889
Decided February 4, 1889
129 U.S. 372
APPEAL FROM THE CIRCUIT COURT OF THE UNITED
STATES FOR THE NORTHERN DISTRICT OF ILLINOIS
A stockholder in an insolvent corporation, who has paid his stock subscription in full by a transfer of a tract of land, in good faith at an agreed value, for the use of the company's business is not liable in equity to a creditor of the corporation who had knowledge of and assented to the transaction at the time when it took place solely upon the ground that the land turned out to be of less value than was agreed upon.
The doctrine that the distribution of a trust fund of a corporation to the individual stockholders upon their resolution does not deprive a creditor not consenting thereto of his right to compel the application of the fund to the payment of the debts of the corporation cannot be invoked by a creditor who is a stockholder consenting to the distribution and participating in the appropriation.