Defendant received ten shares of stock in a national bank under a trust arrangement for the purpose of qualifying him as a director. The shares were transferred on the bank's stock books to the defendant as absolute owner. At the end of his term as director defendant terminated the trust arrangement but did not have a transfer made upon the stock books. Plaintiff, receiver upon failure of the bank, sued for an assessment under U. S. C. tit. 12, sec. 64. Held, since it is conclusively presumed that creditors become such in reliance on the statutory liability of those whose names appear upon the stock books as absolute owners, defendant is liable, having failed to do everything legally possible to effect a transfer upon the stock books. Schram v. Plym, (D. C. W. D. Mich. 1934) 7 F. Supp. 478.
CORPORATIONS - DOUBLE LIABILITY OF EX-DIRECTOR REGISTERED AS STOCKHOLDER FOR QUALIFYING SHARES,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol33/iss7/10