Stockholder's double liability
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 224 U.S. 243 - Converse v. Hamilton · 1912Most cited · 374 citing opinions
The provision is self-executing, and under it each stockholder becomes liable for the debts of the corporation in an amount measured by the par value of his stock. This liability is not to the corporation, but to the creditors collectively; is not penal, but contractual; is not joint, but several; and the mode and means of its enforcement are subject to legislative regulation.