Wesco Supply Co. v. Smith
Supreme Court of Arkansas
Appeal from Pulaski Circuit Court, Third Division; G. W. Hendricks, Judge; 1. Smith was liable. It was error to grant the peremptory instruction.
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Appeal from Pulaski Circuit Court, Third Division; G. W. Hendricks, Judge; 1. Smith was liable. It was error to grant the peremptory instruction. He was -a stockholder and actively participated in the management of the corporation. 35 Ark. 144; 62 Id. 229; 125 Id. 155; 168 Fed. 187; 196 S. W. 462; 10 Cyc. 248; 17 L. R. A. 549; L. R. A. 1916 C. 196-201; 29 L. R. A. 143; 39 Id. 810; 10 Cyc. 658. 2. To constitute a corporation de facto there must be a bona fide attempt to comply with the law. 121 Ark. 541; 168 Fed. 187; 7 R. C. L. 64; 10 Cyc. 252; 8 A. & E. Ene. L. (2d ed.) 752. There was no…
1DissentMcCULLOCH, C. J.
The Arkansas Public Service Company was undoubtedly a de facto corporation, according to the great weight of modern authority. So was the concern dealt with in the case of Garnett v. Richardson, 35 Ark. 144. The facts in the two cases are identical so far as concerns the ineffectual attempt to organize a corporation. The principle which formed the basis of the decision in Garnett v. Richardson is that participation in the operation of a business under corporate name without 'Completion of the organization so as to constitute a corporation de jure, makes such participants copartners in the…
2Cases cited3 opinions
- Garnett v. RichardsonSupreme Court of Arkansas · 1879
- Bank of Midland v. HarrisSupreme Court of Arkansas · 1914
- Breitzke v. TuckerSupreme Court of Arkansas · 1917