dl Corporations — Sale of Stock for Delinquent Assessment — Publication of Notice Essential.—A forfeiture of stock for nonpayment of an assessment is void in t'he absence of a publication of notice of the delinquent sale as required by section 337 of the Civil Code.

[2] Id.—Sale of Stock Without Publication — Acquiescence of Stockholders—"Validity of Forfeiture as to Creditors.—A ~bona fide sale of stock for nonpayment of an assessment made without publication of notice of the delinquent sale is binding upon the creditors of the corporation where no proceedings are taken to recover the stock as provided by section 347 of the Civil Code.

[3] Id.—Purchase of Stock by Corporation at Delinquent Sale— Termination of Liability of Stockholder for Unpaid Balances on Stock.—In view of sections 343 and 344 of the Civil Code, authorizing corporations to purchase its own stock at a delinquent assessment sale, the effect of such a sale, as between the stockholder and the corporation, is wholly to divest the stockholder of all right or interest in his shares, to pass title to the corporation, and to terminate all liability on the part of the stockholder for unpaid balances on his stock.

[4] Id.—Insolvency of Corporation — Stockholders not Chargeable With Knowledge.—Stockholders of a corporation are not chargeable with knowledge of the corporation’s insolvency.

[5] Id.—Forfeiture of Stock After Insolvency of Corporation— Liability of Stockholders for Unpaid Balances to Creditors. In the absence of fraud, collusion, or intention to prejudice the rights of creditors, stockholders of a corporation whose stock has been forfeited and purchased by the corporation for delinquent assessments are not liable to the creditors of the corporation for the unpaid balances on their stock, notwithstanding the forfeiture was made after the corporation had become insolvent.