Liability of Persons Transacting Business Before Minimum Capital Stock Subscribed For

1. Law
2. Georgia Code
3. Corporations, Partnerships, and Associations
4. Secretary of State Corporations
5. Powers and Liabilities
6. Liability of Persons Transacting Business Before Minimum Capital Stock Subscribed For

Persons who organize a company and transact business in its name before the minimum capital stock has been subscribed for are liable to creditors to make good the minimum capital stock with interest.

(Civil Code 1895, § 1856; Civil Code 1910, § 2220; Code 1933, § 22-707; Code 1933, § 22-4104, enacted by Ga. L. 1968, p. 565, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 18 Am. Jur. 2d, Corporations, § 96 et seq.

ALR.

- Inadequate capitalization as factor in disregard of corporate entity, 63 A.L.R.2d 1051.

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