Clarke v. Armstrong

106 S.E. 289, 151 Ga. 105, 1921 Ga. LEXIS 166
CourtSupreme Court of Georgia
DecidedFebruary 17, 1921
DocketNo. 1890
StatusPublished
Cited by3 cases

This text of 106 S.E. 289 (Clarke v. Armstrong) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarke v. Armstrong, 106 S.E. 289, 151 Ga. 105, 1921 Ga. LEXIS 166 (Ga. 1921).

Opinion

Beck, P. J.

(After stating the foregoing facts.) A reading of the foregoing statement of the substance of the pleadings in this case will disclose the fact that many important questions affecting military companies, both those which have been incorporated and those not incorporated, are involved:— questions affecting not only the property rights that may have been acquired by such companies or corporations, but affecting their very existence. But there is one controlling question; and the proper determination of that, under our view of the case as presented, will render the decision' of the other questions in the ease unnecessary.

The demurrer in the casé, upon one ground, raises the point that [111]*111the petitioners below do not show that they have such an interest-in the property involved in the controversy as authorizes them to maintain this suit. The petitioners’ general contention is, that the act of Congress of June 3, 1916, called the National defense act, had the effect of superseding and destroying the State legislation granting the charter to the Gate City Guard, and that when the troops composing the guard were drafted into the service of the Government, they were thereby discharged from the militia, and the effect was to destroy the State military organization theretofore existing, as the members of that organization who went into the Federal service stood thereby discharged from the militia, according to the terms of the act; and that all those who failed to enter the service and take the' oath were likewise discharged •from the militia by the State Government through the Adjutant-General, and the effect of this was to leave the organization wholly without members. And they further insist that by no enactment prior to June, 1916, did Congress assume exclusive jurisdiction of organizing, arming, and disciplining the militia and of prescribing the' discipline by which the State should train the militia, and never until the act of 1916 did Congress forbid the States from maintaining any other military organizations; and that therefore the Gate City Guard continued to exist up to June 3, 1916, at which time, by the enactment of the law referred to, the Gate City Guard as a military organization was effectively destroyed, and that the property then belonging to it was subject to be distributed according to the law controlling the assets belonging to corporations at the time of their dissolution, and that those members of the Gate City Guard who were members at the time of the dissolution were entitled to have the assets of the corporation divided among themselves equally, after the debts of the company were paid. They claim the right to this property under the provisions of the Civil Code, § 2245, as follows; Upon the dissolution of a corporation, for any cause, all of the property and assets of every description belonging to the corporation shall constitute a fund — first, for the payment of its debts, and then for equal distribution among its members. To this end the superior court of the county where such corporation was located shall have power to appoint a receiver, under proper restrictions, properly to administer such assets under its direction.” If the section just quoted did not [112]*112have the effect of giving to petitioners the right to have the property divided and to participate in a division of the same, then they had no right to maintain this suit. For, if the effect of the act of Congress relatively to the continued existence of the company was as petitioners contend, nevertheless, if' upon its dissolution they were not entitled to have the property distributed among those who were members at the time ,of the termination of the existence of the company, they have no standing in court for any of the purposes sought by their, petition. And we do not think that section 2245 of the Code, above quoted, is applicable in ease of a dissolution of a corporation like the one under consideration here. The expression, "equal distribution among its members,” has not the controlling force attributed to it in the argument of counsel for defendants in error, where it is insisted that the provision for " equal ” distribution shows conclusively that the statute is applicable to corporations like that involved here; but as the statute was intended to make provision for the distribution of the assets of corporations generally, where certificates of shares of stock are issued and held by the members of the corporation, the word "equal” must imply, not absolute equality of amount, but equality of right entitling each member to an amount pajuible from the proceeds of the assets of the corporation proportionate to his interest in the corporation’s property or to the amount of the shares of stock held by each member.

From the statement of the facts in the case of Mason v. Atlanta Fire Company, 70 Ga. 604 (48 Am. R. 585), it appears that Mrs. Mason filed her bill on behalf of herself and her minor children against the Atlanta Fire Company, alleging, in substance, as follows: In 1850 the company was incorporated by the legislature, under the name of the Fire Company of the City of Atlanta. They were to elect their own officers, who were to be commissioned by the Governor. The members, not exceeding thirty in number, were to be exempt from jury duty, and, except in case of war, from militia duty. The length of time for continuance of the corporate privilege was not prescribed. By the act of 1854 the membership was increased to sixty, and the name changed to the Atlanta Fire Company No. 1. Perpetual succession was given, with the right to have a seal, to sue and be sued, to form a constitution and adopt by-laws. They subsequently adopted a constitution and by[113]*113laws, which provided for the election of members, their duties, their expulsion, the dropping of them from the roll for' delinquencies, the election of officers, etc. No provision was made, either in the charter or in the constitution and by-laws, for the acquisition of property; but from the collection of dues from the members and by voluntary donations, fairs, festivals, excursions and other public and private entertainments, a considerable amount of money was raised and invested in real and personal property for the use of the company. Mason, the husband of complainant, had been a member of this company, and by his zeal, skill and energy he contributed more to the creation of this fund than any other member. He died in October, 1867, being at that time an active member in good standing, with all his dues paid and a clear record on the company’s books. In 1882 the system of fire service in Atlanta was changed, the volunteer service being discontinued and a paid department being organized. This company, therefore, was dissolved, or at least the object of its incorporation ceased. They had sold their personal property for an amount not known to complainant, ,and their real estate for $10,000, and the living members of the company were about to distribute the money without regard to the rights of the widows and orphans of deceased members. But it was charged that if the fund was so distributed, it would, in a large measure, go into the hands of persons who were insolvent and could not respond to any judgment complainant might recover. She prayed for an accounting between living members and the representatives of deceased members, for the appointment of a receiver to take charge of the fund, and for injunction to prevent its being paid out until the rights of complainant could be ascertained.

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Cite This Page — Counsel Stack

Bluebook (online)
106 S.E. 289, 151 Ga. 105, 1921 Ga. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clarke-v-armstrong-ga-1921.