Corporation Commission v. . Latham

160 S.E. 295, 201 N.C. 342, 1931 N.C. LEXIS 235

• Court: Supreme Court of North Carolina
• Decided: September 23, 1931
• Status: Published

Opinion

Stacy, C. J.

It was held in Trust Co. v. Jenkins, 193 N. C., 761, 138 S. E., 139, “that no person who appears upon the records of a bank as a stockholder therein is relieved of personal liability under 3 C. S., 219(a), by virtue of the provisions of 3 C. S., 219(c), unless the said record, or the stock certificate issued to him, shows that he holds the said stock as trustee for a cestui que trust named on the record or in the certificate.”

Under this holding and on the facts appearing of record, it would seem that the present defendant ought not to be held individually responsible as a stockholder in the Bank of Belhaven under 3 0. S., 219(a), for the amount assessable against the stock duly transferred by him 16 May, 1925, in good faith, to J. R. Latham, trustee, and H. Y. Latham, trustee.

The decision in Early, Receiver, v. Richardson, 280 U. S., 496, cited and relied upon by plaintiffs, is distinguishable by reason of a different fact situation.

Affirmed.