...App. Div. — , 165 NY Supp. 872. In New York, section 28 of the Stock Corporation Law is as follows: "The directors of a stock corporation shall not make...withdraw or in any way pay to the stockholders or any of them(l any part of the capital of such corporation, or reduce its capital stock, except as authorized...

...surplus profits arising from 'J ' ^ the business of such corporation, nor divide, withdraw, or in ' rt i any way pay to the stockholders or any of them, any...its capital stock, except as authorized by law. In the case of any violation of the provisions of this section, the directors under whose administration...

...declare, dividends except from the surplus profits arising from the business of such corporation, or to "divide, withdraw, or in any way pay to the stockholders or any of them, any part of the capital stock of such corporation or reduce its capital stock, except as authorized by law." To say that dividends...

...1912, § 1169) provides that it shall not be lawful for the trustees or directors — "to divide or withdraw, or in any way pay to the stockholders, or any of them, any part of the capital stock of the company, nor to reduce the capital stock unless in the manner prescribed in this act,...

...legally declared or paid. [2] Section 28 of the Stock Corporation Law (Consol. Laws, c. 59) provides : "The directors of a stock corporation shall not make...business of such corporation, nor divide, withdraw nor In any way pay to the stockholders, or any of them, any part of the capital of such corporation."...

...corporation shall not make any dividend, except from the surplus profits arising from their business, nor divide, withdraw or in any way pay to the stockholders or any of them any part of its capital or reduce the net surplus of the corporation to an amount less than ten per cent of its...

...be paid at a price fixed by the board of directors, but otherwise the corporation shall not divide, or in any way pay to the stockholders, or any of them, any part of its capital stock." While the courts seem to have been liberal in defining surplus profits it is doubtful...

...upon directors in this regard is provided by the following quotation from the statutes of New York: The directors of a stock corporation shall not make...its capital stock except as authorized by law. In the case of any violation of the provisions of this section, the directors under whose administration...

...for the trustees to make any dividend except from the net profits arising from the business of the corporation, nor divide, withdraw, or In any way pay...stockholders, or any of them, any part of the capital stock of the company, nor to reduce the capital stock of the company unless in the manner proscribed...

...so far as material, is as follows : "Liability of Directort for Making Unauthorized, Dividends. — The directors of a stock corporation shall not make dividends, except from the surplus profits arsing from the business of such corporation, nor divide, withdraw or in any way pay to the stockholders...