Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Series

Business Organizations Law

PDF

Yale Law School

1936

Articles 1 - 1 of 1

Full-Text Articles in Law

Statutory Protection Of Creditors In Reduction Of Capital Stock, Charles C. Callahan Jan 1936

Statutory Protection Of Creditors In Reduction Of Capital Stock, Charles C. Callahan

Faculty Scholarship Series

The sharp process of deflation which business has undergone
during recent years has vested statutes relating to the reduction
of corporate capital with an importance little appreciated when
most of such statutes were enacted. Since 1929 an abrupt reversal
of the previous tendency to increase corporate capitalizations
has taken place. Enormous sums of money and the interests
of many people have been subjected to the procedures for
reduction of capital prescribed by the various corporation acts.
With a few exceptions the protection which these acts afford to
the creditors of the corporation involved is entirely inadequate,
a situation which may ...