[1] Corporations—Failure to Pay License Tax—Dissolution—Maturing op Obligations.—The dissolution of a corporation by-operation of law for failure to pay its license tax does not have the effect of maturing its obligations.

[2] Id.—Watered Stock-—Stockholders’ Liability — Accrual op Bight op Action—Statute op Limitations.—The general rule is that the right of action by a creditor against a stockholder of a corporation on his liability as a holder of watered stock does not accrue until judgment first has been obtained against the corporation and execution thereon is returned nulla bona, and the statute of limitations on a creditor’s bill in equity against the stockholders does not begin to run until the return of the execution nulla bona.

[3] Id.—Exception to Bule.—An exception to the rule requiring that judgment be first had against the corporation before the accrual of a right of action by a creditor against a stockholder on his liability as holdey of watered stock is where the corporation is insolvent; in such a ease the creditor may bring an action against the corporation and stockholder without first securing a judgment against the corporation and return of execution nulla bona.

[4] Id.—Promissory Notes op Corporation—Dissolution by Failure to Pay Tax—Insolvency and Notice op—Liability op Holder op Watered Stock—Accrual op Cause op Action.—The cause of action against a holder of watered stock of a corporation to a creditor of the corporation on promissory notes executed by it accrues when the notes become due, where the corporation was dissolved on a certain date for failure to pay its license tax and was at -that time insolvent and the creditor had notice thereof, but the corporation was never declared an insolvent or bankrupt and no assignment for the benefit of creditors was made.

2. Limitation of action to enforce stockholder’s statutory liability, note, 3 Ann, Cas. 505,

[5] Id.—Creditor’s Bill—Statute op Limitations—Section 343, Code op Civil Procedure—An action by a creditor of a corporation against a stockholder on his liability by reason of being a holder of watered stock is an equitable action in the nature of a creditor’s bill, and the time for filing such action is regulated by section 343 of the Code of Civil Procedure, which prescribes a four years’ limitation after the cause of action shall have accrued.

[6] Id.—Exchange op Property por Watered Stock—Subsequent Transferees With Notice—Stockholder’s Liability.—Stockholders of a corporation who originally received watered stock from it in exchange for property and those subsequently taking the stock with notice of the original transaction are bound to make good the difference between the value of the property transferred and the par value of the stock to creditors extending credit without notice of such overvaluation.

[7] Id.—Defendants Joined by Amended Complaint—Running of Statute op Limitations.—In an action against stockholders of a corporation on their liability to a creditor by reason of being holders of watered stock, as to defendants who were not made parties to the original complaint, but were joined by an amended complaint, filed beyond the statutory time for bringing the suit, the cause of action is barred, as the statute of limitations on the right of action against the stockholders was running at the same time and, hence, was operating at the time of filing of the amended complaint, which, so far as they are concerned is taken as the date of the beginning of the action.

[8] Id.—Failure to Transfer Stocks on Books—Bights of Creditors.'—Failure to make the transfer of stock on the books of a corporation requires that such transfer be disregarded in considering the rights of a creditor of the corporation, for the stockholder remains liable to the creditor of a corporation in the absence of the proper transfer.