135 Ga. 1 | Ga. | 1910
The action is by T. C. Crawford, trustee in bankruptcy of the Augusta Debenture Company Limited,'against H. C. Roney, to recover a balance due on a stock subscription. The case
1. The court instructed the jury, that the defendant would not be entitled to the stock-dividend credit unless the dividend had been actually earned at the time it was declared, and that dividends on corporate stock can only be declared and paid out of net profits; and refused to instruct them that if the dividend was declared by the directors in good faith and received by the stockholders in the belief that the same had been paid out of the profits, the defendant would be entitled to a credit for such dividend upon his stock subscription, even though such dividend was paid out of the capital stock. The charge of the court was in accord with the principles enunciated in the case in 130 Ga. 515. In that report the evidence submitted by the plaintiff to show that the dividend claimed by the subscriber had not been actually earned was examined and held sufficient to carry the ease to the jury on that issue. The same evidence was produced upon the second trial, and is sufficient to sustain the finding of the jury, which was adverse to the defendant.
' 2. According to the averments of the amended plea, it is contended that the present suit is an effort to collect assets of a bankrupt corporation which was engaged in the business of a lottery, for the purpose of reimbursing the debenture or lottery-ticket holders.
Affirmed.