119 Ga. 990 | Ga. | 1904
On October 1, 1901, the Commercial Bank of Augusta, brought suit against W. B. Lamkin and Thomas Warthen, alleging in its petition substantially as follows: In September, 1898, defendants formed a partnership, under the name of W. B. Lamkin & Company, for the conduct of the retail grocery business. The capital stock was $5,000, which was furnished by Warthen. After conducting business for a short time as a partnership, Lamkin and Warthen applied for a charter to carry on the business as a corporation under the name of the W. B. Lamkin Company, which charter was granted on November 22, 1898. The capital stock was to be $5,000, of which ten per cent, was alleged to have been paid in. At the time of the granting' of the charter the stock and other assets of the firm were not worth $5,000, having been diminished by sales at least $2,500; the proceeds having been used in payment of goods bought by the firm. Ten per cent, of the capital stock had not been paid in, as alleged in the petition for incorporation, nor was it thereafter paid in. After the charter was granted defendants held no meeting, and opened no books of subscription; no subscriptions were made by either of the defendants, the charter was never accepted; no rules, regulations, or by-laws were adopted;
Judgment affirmed.