McGaw v. Hoen

1 Citing case

  1. Archway Motors, Inc. v. Edelson

    95 A.2d 475 (Md. 1953)   Cited 4 times
    In Archway Motors, Inc. v. Edelson, 202 Md. 75, we held that a cross-bill, attacking the validity of outstanding stock issued pursuant to an agreement, was properly dismissed, even assuming that the resolutions authorizing it were inadequate and no stock issuance statement was filed.

    The appellants contend that the transaction had gone so far, when the first agreement as to the stock division had been reached, that the incorporators could not legally substitute the agreement as to the issuance of both notes and stock. They strongly rely upon the case of McGaw v. Hoen, 133 Md. 672, 106 A. 13. In that case promoters conveyed property to a corporation in return for stock. Subsequently, certificates of indebtedness were issued to some of the promoters to the full amount in value of their interests in the property conveyed.