Unlike partnerships and joint-stock companies, the members of a corporation (its stockholders) are not liable individually for the debts of the firm; but they are liable to the corporation for any unpaid part of their subscriptions. Thus, A agrees to buy ten $100 shares, but pays only $400. The corporation can compel him to pay the other $600. Or the creditors might compel him to pay the $600, for it is a sort of fraud on the creditors to advertise capital stock of $100 a share, presumably paid in cash or in property of equivalent value, and then to find that only $40 a share has been paid. Statutes may make stockholders liable for an additional amount, over and above the face value of their stock. A, above, might, if the statutes so provided, have to pay another $100 on each share of stock, if the corporation property is not sufficient to pay the debts of the corporation. This is usually the case in a bank and is known as the "stockholder's double liability."

Form Of Minutes For Directors' Meeting

(City or town)................, (date)..........

The regular meeting of the Board of Directors of the........................ Bank of..............

...................was held at their banking house at......o'clock......................(date) with the following members present, viz.:

Messrs..........................................

..................................................................................

.................................................................................

Minutes of meeting of.......................were read and on motion approved.

A statement of the bank at the close of business ......was submitted to the directors.

All loans and discounts from...............(date) to................(date) inclusive, were read to the directors (or were submitted to the directors) and on motion duly seconded were approved.

(Here record any other business that transpired.)

No further business being presented, the meeting on motion adjourned.