Page:Federal Reporter, 1st Series, Volume 5.djvu/416

 iOi FEDERAL REPORTER. �2. Samb— AssBsssMENT OF Stock— Salb of Shahes. �; Bdd, furOier, that unless such stockholders had subscribed for stock, OTwere the successors of such subscribers, agsessmeuts levied upon them could only be enforced by the sale of their sbares. �3. Dblinqueiit Stock— Pbrsonaii Liabilitt of SharehoIiDBii — Code �OF Civ. Pkoc. of Cal. J 349. �Section 349 of the Code of Civil Procedure of the state of California, relating to the sale of delinquent stock, provides that " on the day specifled for declaring the stock delinquent, orat any time subsequent thereto and before the sale of the delinquent stock, the board of di- rectors may elect to waive further proceedings under this chapter for the collection of delinquent assessments, or any part or portion thereof, and may elect to proceed by action to recover the amoiint of the asseesment, and the costs and expenses already incurred, or any part or portion thereof." Hdd, that this section did not create any Personal liability for assessments, unless from the terms of the stockholder's subscription such liability was incurred. �4. Stockholder— Limitation of Personal Liability — CoDit of Cit. �Pboc. op Cal. } 322. �By section 322 of the Code of Civil Procedure of the state of Cali- fornia, as amended March 15, 1876, the individuaT liability of a stock- holder of a corporation is limited to such proportion of its debts and liabilities as the amount of stock or shares owned by him bears to the whole stock of the corporation ; and, on payment of his proportion of any debt due from the corporation, incurred while he was a stock- holder, he is relieved from any further Personal liability for such debt. Hdd, that the remedy of a crediter against a stockholder person- ally is limited by this section of the Code, and cannot be extended beyond the limits therein prescribed. �r'.AppIication for leave of assessment on shareholders of stock of a mining corporation. �James A. Waymire, for creditora. �McAllister e Bergin, for William Willis. �HoPFMAN, D. J. At the request of counsel I indicate the grounds for the deniai of the application heretofore made to order an assessment to be levied on the shareholders of the above corporation. The assessment is asked for with the object of collecting the sqime by suits in personam against delinquent shareholders. The question whether they are per- sonally liable must, therefore, first De determined. I do not question the power of the court to compel contribution of nnpaid subscriptions to the capital stock of an insolvent cor- poration for the purpose of paying its debts. Upton v. Tribil- ����