Stineman

This is an action to recover the par value of 8,500 shares of respondent’s stock alleged to have been subscribed for by appellants and for which they failed and refused to reimburse the company.

The court found that respondent was a corporation duly organized and existing under the laws of the state of California; that on or about July 7, 1925, appellants, together with W. E. Knotts, F. W. Becker and L. H. Hendricks, entered into an oral agreement among themselves to form the respondent corporation and subscribe for certain stock, and pursuant thereto articles of incorporation were prepared and signed by appellants and W. E. Knotts in which articles they subscribed for the capital stock as follows: F. L. Stineman, 4,000 shares; Charles Paige, 4,500 shares; F. L. Stineman and Charles Paige jointly, 1500 shares in the name of the High Boy Coaster Co.; F. W. Becker subscribed for 3,500 shares, all of the par value of one dollar each; that within thirty days thereafter the corporation was duly incorporated and a charter was granted by the secretary of the state of California, said corporation was duly organized, commenced the operation of its business and appellants became officers…