§ 323 — Assessment of stockholders to make good impairment of capital; sale of stock

§ 323. Assessment of stockholders to make good impairment of capital;\nsale of stock.\n Whenever the superintendent shall have made requisition upon any safe\ndeposit company pursuant to the provisions of article two of this\nchapter to make good the amount of an impairment of its capital, the\ndirectors of the safe deposit company shall immediately give notice of\nsuch requisition to each stockholder of the amount of the assessment\nwhich he must pay for the purpose of making good such deficiency, by a\nwritten or printed notice mailed to such stockholder at his place of\nresidence, or served personally upon him. If any stockholder shall\nrefuse or neglect to pay the assessment specified in such notice within\nsixty days from the date thereof, the directors of such safe deposit\ncompany shall have the right to sell to the highest bidder at public\nauction the stock of such stockholder, after giving previous notice of\nsuch sale once a week for two successive weeks in a newspaper of general\ncirculation in the county where the principal office of such safe\ndeposit company is located; or such stock may be sold at private sale,\nand without such published notice, provided, however, that before making\na private sale thereof an offer in writing to purchase such stock shall\nfirst be obtained, and a copy thereof served upon the owner of record of\nthe stock sought to be sold either personally or by mailing a copy of\nsuch offer to such owner at his place of residence or the address\nfurnished by him to the safe deposit company; and if, after service of\nsuch offer, such owner shall still refuse or neglect to pay such\nassessment within two weeks from the time of service of such offer, the\nsaid directors may accept such offer and sell such stock to the person\nor persons making such offer, or to any other person or persons making a\nlarger offer than the amount named in the offer submitted to such\nstockholder; but said stock shall in no event be sold for a smaller sum\nthan the amount of the assessment called for and the necessary costs of\nsale. Out of the avails of the stock sold the directors shall pay the\nnecessary costs of sale and the amount of the assessment called for\nthereon. The balance, if any, shall be paid to the person or persons\nwhose stock has been thus sold. A sale of stock as herein provided shall\neffect an absolute cancellation of the outstanding certificate or\ncertificates evidencing the stock so sold, and shall render the same\nnull and void and a new certificate or certificates shall be issued to\nthe purchaser or purchasers of said stock.\n