§ 58-17-950 — Liability of stockholders of certain corporations.

Every stockholder in a railroad corporation, created under the Constitution of 1868 and prior to the adoption of the Constitution of 1895, shall be jointly and severally liable to the creditors thereof in an amount, besides the value of his share or shares therein, not exceeding five per cent of the par value of the share or shares held by him at the time the obligation held by or the debt due the creditor was created; provided, that such obligation or debt shall have been payable within one year after it was created or incurred, and that proceedings to hold such stockholder liable therefor shall be commenced whilst he remains a stockholder therein or within two years after he shall have ceased to be such stockholder. Persons holding stock in such company as executors, administrators or by way of collateral security shall not be personally subject to the liabilities of the stockholders under the foregoing provisions, but the persons pledging such stock shall be liable as a stockholder and the estates and funds in the hands of such executors or administrators shall be liable in their hands in like manner and to the same extent as the deceased testator or intestate or the ward or person interested in such trust fund would have been if they had respectively been living and competent to act and hold the stock in their own names.

Legislative History

HISTORY: 1962 Code SECTION 58-945; 1952 Code SECTION 58-945; 1942 Code SECTION 8266; 1932 Code SECTION 8211; Civ. C. '22 SECTION 4775; Civ. C. '12 SECTION 3110; Civ. C. '02 SECTION 2036; R. S. 1548; 1885 (19) 171. ARTICLE 9 General Powers of Railroads