Fuhrman

The respondent brought action against the appellant, American National Building and Loan Association, a corporation, and the other appellants as directors thereof, to recover the sum of $2,500, being the amount of a first payment made by respondent on a subscription for 100 shares of the “guarantee capital stock” of the appellant corporation, and prayed for the cancellation of the subscription agreement upon the ground that he had been induced by fraudulent representations of the appellants and their agents to sign the subscription agreement. Judgment was entered in favor of respondent for the sum of $2,500, with interest thereon at the legal rate from June 4, 1929, and it was decreed that the subscription agreement be canceled and surrendered to the respondent.

The defendant corporation was organized as a building and loan corporation under the laws of California, on February 28, 1929, with an authorized “guarantee capital stock” of $5,000,000 divided into 50,000. shares of the par value of $100 each. For the purposes of the organization, there were seven directors, to each of whom there were ostensibly allotted ten shares of the capital stock, none of which, however, were ever…