Handley v. Stutz
United States Supreme Court
139 U.S. 417 (1891)
- Written by Elizabeth Yingling, JD
Facts
A company in dire financial straits sold bonds to raise money and avoid bankruptcy. To entice bond purchasers, the company gave free shares of newly issued stock to the purchasers. A judgment creditor (plaintiff) of the company sued the new shareholders (defendants) and demanded they pay the par value for the free shares of stock they had received.
Rule of Law
Issue
Holding and Reasoning (Brown, J.)
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