CORPORATIONS - PLEDGE OF STOCK - STATUTORY LIABILITY OF PLEDGEE

Authors

Abstract

The owner of shares of bank stock pledged them to defendant corporation to secure a loan. Defendant had the bank issue a new certificate to it in its own name. On the failure of the bank plaintiffs, creditors, sought to hold defendant for "double" liability under statute. Held, under the Montana statute providing that pledgees should not be personally liable as stockholders, defendant was not liable despite the fact that the bank's records did not show it to be a pledgee. Mitchell v. Banking Corp. of Montana, (Mont. 1933) 24 Pac. (2d) 124.

Recommended Citation

CORPORATIONS - PLEDGE OF STOCK - STATUTORY LIABILITY OF PLEDGEE, 32 Mich. L. Rev. 268 (1933).
Available at: https://repository.law.umich.edu/mlr/vol32/iss2/15