744 THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



826. Dividend Receipt Book This is a book in which are entered in 

 alphabetical order, whenever a dividend is declared, the names of each of 

 the shareholders, together with the number and value of shares held, the 

 percentage of dividend and dividend amount. Opposite each of these 

 amounts, whenever the dividends are paid to them, the shareholders sign 

 their names and enter the dates upon which they receive such payment. 



827. Stock Ledger. The Stock Ledger is a book in which is kept a 

 record of the names of all the shareholders and number and par value of 

 shares held by each. It is a private book, and is in no way connected with 

 the other books of the Company. A " Capital Stock " account is opened in 

 this book, which account is debited for the total number and par value of 

 the shares issued by the corporation ; following this, an account is then 

 opened with each of the shareholders ; then, the " Capital Stock" account 

 is credited for all shares that are disposed of, and each of the persons to 

 whom such shares were sold are debited for the number and par value of 

 same. When the total number of shares issued by the corporation has been 

 disposed of, the " Capital Stock " account here opened will balance, and 

 all the shares will have been debited to shareholders ; therefore, when this 

 account does not balance, the difference between the two sides always shows 

 the number and par value of shares remaining unsold, or not yet subscribed 

 for. The total of all the accounts in the Stock Ledger (including the dif- 

 ference, if any, between the two sides of the " Capital Stock" account) 

 should always represent just the amount of stock issued by the corpora- 

 tion. 



When a shareholder transfers shares to another person, the person to 

 whom the shares are transferred must take the certificate of stock to the 

 Company which issues it and have the transfer recorded in the Stock 

 Ledger ; which is done by the Company crediting the old shareholder and 

 debiting the new. 



828. "Limited" Liability and " Full Liability" Companies. LIMITED. 

 When the word '* Limited" is affixed to a stock company's name, it sig- 

 nifies that each shareholder is individually liable to the creditors of the 

 company for only the amount representing the value of shares held by 

 each. If suit is brought against the Company for a claim and it is not 

 paid by the Company, action may be brought against any one of the share- 

 holders to the extent of the shares held by him ; and when claim is by 

 him paid, he may recover from each of the other shareholders the amount 

 paid in proportion to the shares by each held less his own proportion of 

 such claim. If a " Limited Liability Company " omits to add the word 

 " Limited" after its name wherever and whenever they cause it to appear 



