The Statute And Case Law of the State of New Jersey Relating to Business Compani

Cover The Statute And Case Law of the State of New Jersey Relating to Business Compani
The Statute And Case Law of the State of New Jersey Relating to Business Compani
James B James Brooks Dill
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" (P. L. 1829, p. 58. ) Under that Act it was held that the only criterion of insolvency furnished by the Act was the suspension of business, and that the act of insolvency contemplated by the statute is committed at the time the company suspends its ordinary business operations. {Bedford v. Nezuark Machine Co. , 16 N. J. Eq. , 117. ) 64. Conveyance or assignment of property, etc. , after insol- vency, or contemplation of insolvency, void as against creditors.
W'henex'er any corporation shall b
...ecome insolvent or shall suspend its ordinary business for want of funds to carry on th. E insolvency; convEyanck of propkrty void. ^y same, neither the (hrectors nor any officer or agent of the cor- § 64 poration shall sell, convey, assign or transfer any of its estate, effects, Glioses in action, goods, chattels, rights or credits, lands or tenements; nor shall they or either of them make any such sale, convevance, assignment or transfer in contemplation of in- solvency, and every such sale, conveyance, assignment or trans- fer shall be utterly null and void as against creditors; provided, that a bojia fide purchase for a valuable consideration, before the corporation shall have actually suspended its ordinary business, by any person without notice of such insolvency or of the sale being made in contemplation of insolvency, shall not be invali- dated or iiupeached.

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