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- Title
CREDITORS' PROTECTION AND STOCKHOLDERS' RESPONSIBILITY.
- Authors
Winakor, Arthur H.
- Abstract
The article focuses on creditor's protection and stockholder's responsibility. The extent and nature of the responsibility of stockholders is determined very largely by their own contractual agreements with the corporation and by the contracts between creditors and the corporation. Along with changes in the evolution of the corporation there have been equally significant changes in these contracts. Notable among these in recent years have been those accompanying the employment of no-par stock for both preferred and common securities. No-par stock with its greater flexibility has presented many new problems in stated capital and stockholder responsibility-creditor protection. These, too, reflect changes in the contractual relations of stockholders and corporations and whether agreeable to creditors or not, they affect creditors' margin of protection. Although no-par stocks may appear as a distinct phase in the evolution of corporation securities, this may well be doubted. As pointed out later, they simply carry out the natural trends.
- Subjects
DEBTOR &; creditor; NO-par-value stocks; STOCKHOLDERS; BUSINESS enterprises; SECURITIES; INVESTOR relations (Corporations); INVESTORS; ACCOUNTS; CORPORATION law
- Publication
Accounting Review, 1934, Vol 9, Issue 3, p247
- ISSN
0001-4826
- Publication type
Article