Christian E. Christensen, Respondent v. Amos F. Eno, Impleaded

Summary

The New York Court of Appeals reversed the judgment against defendant Eno and ordered a new trial, holding that gratuitously issued shares and bonds do not create a debtor relationship to the corporation or its creditors. Consequently, a creditor cannot compel the shareholder to pay the unpaid portion of such shares or account for bond proceeds.