Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/744

 § 727.] THE LAW OF PRIVATE CORPORATIONS. [CHAP. XIII. Liability of ^sfructive decision regarding the liability of share- ' shareholders in national banks. The shareholders holders in. ....... national in a national bank are " individually responsible equally and ratably, and not one for another, for all contracts, debts, and engagements of such association, to the extent of the amount of their stock therein, at the par value thereof, in addition to the amount invested in the shares." 1 An assessment of seventy per cent. of the value of their shares was made on the shareholders of an insolvent national bank, in order to discharge its liabilities. This assessment was not sufficient, but would have been if all the shareholders had been solvent and within the jurisdiction of the court. A creditor requested the comptroller of the cur- rency to order a further assessment of thirty per cent, and to direct the receiver to proceed as before to collect it. The comptroller refused, and was sustained in his refusal by the Supreme Court, who held that this liability of shareholders was several and not joint, and that the insolvency of one shareholder, or his being beyond the jurisdiction of the court, did not affect the liability of another ; and if the bank itself held any of its stock, the several liability of the other share- holders would not thereby be increased, but would be computed as if the stock held by the bank was in the hands of a natural person. 2 Giving the opinion of the court, Justice Swayne said : " In the process to be pursued to fix the amount of the separate liability of each of the shareholders, it is necessary to ascertain (1) the whole amount of the par value of all the 1 Shareholders in national banks, liable for its debts, are liable for in- terest thereon (to the same extent with the bank), but not in excess of their maximum liability fixed by the statute. Richmond v. Irons, 121 U. S. 27. 2 United States v. Knox, 102 U. S. 422. The comptroller may, however, make a second assessment. Stude- baker u. Perry, 184 U. S. 258. See, also, Crease v. Babcock, 10 Mete. 525; Matter of the Hollister Bank, 27 N. Y. 393. The Ohio Revised Stat- utes, § 3260, provide for joint action 724 and ascertaining the proportion each shareholder shall pay, up to the amount of stock held by him. In an action by a creditor to enforce the individual liability of shareholders under this statute, where not all the shareholders are before the court, and it does not appear that those not served could not have been served, it is error to assess on the share- holders served the whole amount of the corporate indebtedness. Bone- witz v. Van Wert County Bank, 41 O. St. 78.