Attachment of Corporate Property After Nonuse or Assignment of Franchise

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A corporation is not dissolved by the nonuse or assignment to others, in whole or in part, of its powers, franchises, and privileges, unless all the corporate property has been appropriated to the payment of its debts; and any creditor, for the creditor and other creditors, whether that creditor has recovered judgment or not, or any stockholder for that stockholder and other stockholders, may file a bill under this chapter, to attach the corporate property, and have such property applied to the payment of the debts of the corporation, and any surplus divided among the stockholders.

Code 1858, § 3431 (deriv. Acts 1851-1852, ch. 172); Shan., § 5187; Code 1932, § 9358; T.C.A. (orig. ed.), § 23-2803.

Textbooks. Tennessee Jurisprudence, 6 Tenn. Juris., Colleges and Universities, § 12; 7 Tenn. Juris., Corporations, §§ 95, 98, 122.


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