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Texas Vernon's Texas Civil Statutes - Article 6427. Old Directors To Be Trustees

Legal Research Home > Texas Lawyer > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 6427. Old Directors To Be Trustees

Art. 6427. [6630] [4555] [4264] OLD DIRECTORS TO BE 
TRUSTEES.  Whenever a sale of the roadbed, track, franchise and 
chartered powers and privileges is made as hereinbefore provided 
(unless other persons shall be appointed by the legislature or by 
some court of competent authority), the directors or managers of 
the sold out company at the time of the sale, by whatever name they 
may be known in law, shall be trustees of the creditors and 
stockholders of the sold out company, and shall have full power to 
settle the affairs of the sold out company, collect and pay 
outstanding debts, and divide among the stockholders the money and 
other property that shall remain after the payment of the debts and 
other necessary expenses;  and the persons so constituted trustees 
shall have authority to sue by the name of the trustees of such sold 
out company, and may be sued as such, and shall be jointly and 
severally responsible to all creditors and stockholders of such 
company, to the extent of its property and effects that shall come 
to their hands.

P.D. 4916.                                                                    

Last modified: August 10, 2007