138 Ala. 428 | Ala. | 1903
This appeal is prosecuted from an order dismissing the petition of appellant, filed for the purpose of having him declared a creditor in the distribu
It appeal’s from the record that the suit in which this petition was filed, was instituted by a stockholder of 1he association on the 8th day of April, 1899. Its purpose was to wind up the association and to distribute its assets among those entitled to them. It is shown by the bill that the association, long prior to its filing, was insolvent and that its officers had improperly administered its affairs. A receiver was asked for and was appointed on the 21st day of June, 1899.
Petitioner predicates his priority of right to be paid out of the assets of the Association, being administered by the court through its receiver, upon the following-facts: That prior to the 23d day of March, 1899, he was the orvner of thirty shares of stock (class “A”) in said association; that under its by-laAATs, he had a right to withdraw his stock and become entitled, within thirty days from his application for Avithdrawal, to be paid such sum as the accumulation and the condition of the company Avarranted; that on the 23d day ' of March, 1899, the association issued to him a certificate showing- that the Avas entitled to receiA-e the sum of ($600.00) six hundred dollars, after making all proper deductions Avhen his application should be reached in the regular order of paying AvitlidraAvals.
It is averred in the petition that notAvithstanding his application for AvithdraAval and notAvithstanding his request to the association that he .be paid the amount due him upon his application and after complying with the requirements and regulations of said company, he has never been paid anything; that' by reason of said application and by-laAVS he became a creditor of said association and aatis entitled to his money within thirty days after the 23d of February, 1899, at which time the association was a going concern and that he had no notice of its insolvency, if it Avas insolvent.
Upon the question thus presented there is an unreconcilable conflict among the courts. Some of the Eng
After an examination of the cases cited on both sides of the question, we áre clearly of the opinion that the principle above declared is the correct one, and, therefore, adopt it. Any other leads to endless confusion, illogical results and inequality towards the members of the association. For after all, it is by right of membership, and not in any other, that a member who has applied for a withdrawal is entitled to participate in the distribution of the assets of the insolvent association. The decree dismissing the petition must be affirmed.
Affirmed.