Honn

Action to enforce a stockholder’s liability. The case is presented under stipulated facts. It appears therefrom that plaintiff is the assignee of the trustees of the creditors of American Ice Machine Company, a corporation. The record is silent as to the rights of defendants Hamer and Hodges. The alleged liability of defendant Reno is based upon an agreement entered into by him for the purchase of stock in the corporation named. At the date of the agreement of the sale the corporation did not have nor had it applied for or obtained a permit from the corporation commissioner to sell or dispose of its capital stock as required by the Corporate Securities Act (Stats. 1917, p. 673). Subsequent to the time the agreement was entered into the stockholders of the corporation held certain meetings, at which time Reno was present and he participated in the proceedings. The agreement upon which this action is based was before this court in a former proceeding. It appears therefrom that Reno had sued the corporation to recover payments which he had made on the stock and it was there held that the contract was void by reason of the fact that the company had failed to comply with section 3 of…