State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_1 > GS_1-324_6

§1‑324.6.  Proceedings when custodian of corporate books is a nonresident.

When the clerk, cashier, orother officer of any corporation incorporated under the laws of this State, whohas the custody of the stock‑registry books, is a nonresident of the State,it is the duty of the sheriff receiving a writ of execution issued out of anycourt of this State against the goods and chattels of a defendant in executionholding stock in such company to send by mail a notice in writing, directed tothe nonresident clerk, cashier, or other officer at the post office nearest hisreputed place of residence, stating in the notice that he, the sheriff, holdsthe writ of execution, and out of what court, at whose suit, for what amount,and against whose goods and chattels the writ has been issued, and that byvirtue of such writ he seizes and levies upon all the shares of stock of thecompany held by the defendant in execution on the day of the date of suchwritten notice. It is also the duty of the sheriff on the day of mailing thenotice to affix and set upon any office or place of business of such company,within his county, a like notice in writing, and on the same  day to serve likenotice in writing upon the president and directors of the company, or upon suchof them as reside in his county, either personally or by leaving the same attheir respective places of abode. The sending, setting up, and serving of suchnotices in the manner aforesaid constitute a valid levy of the writ upon allshares of stock in such company held by the defendant in execution, which havenot at the time of the receipt of the notice by the clerk, cashier, or other officer, who has custody of the stock‑registry books, been actuallytransferred by the defendant, and thereafter any transfer or sale of suchshares by the defendant in execution is void as against the plaintiff in theexecution, or any purchaser of such stock at any sale thereunder. (1901,c. 2, s. 71; Rev., s. 1217; C.S., s. 1206; 1955, c. 1371, s. 2.)