BANIGAN V. BARD, 134 U. S. 291 (1890)
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U.S. Supreme Court
Banigan v. Bard, 134 U.S. 291 (1890)
Banigan v. Bard
No. 1354
Submitted January 8, 1890
Decided March 17, 1890
134 U.S. 291
Syllabus
An officer in a corporation who is leading in its management, who is active in securing the passage of a resolution authorizing an issue of preferred stock, who subscribes for such stock and pays his subscription and takes his certificate and votes upon it at shareholders' meetings for over two years, and induces others to take such stock, cannot, when the company becomes insolvent, recover back the money paid by him on his subscription on the ground that the statutes of the state only authorized an issue of general shares.
The case is stated in the opinion.