Foley v. Lyman
Supreme Court of Iowa
Appeal from Osceola District Court. — William Hutchinson, Judge. The Grain Growers Incorporated Co-operative Association of Melvin was organized in 1905. The articles of incorporation fixed its capital at not less than $1,000 and not more than $25,000, divided into shares of $10 each, and its business was that of buying, selling, and -dealing “in all kinds of farm and dairy products, cattle, swine, sheep, poultry, dry goods, boots and shoes, groceries, hardware, farm…
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Appeal from Osceola District Court. — William Hutchinson, Judge. The Grain Growers Incorporated Co-operative Association of Melvin was organized in 1905. The articles of incorporation fixed its capital at not less than $1,000 and not more than $25,000, divided into shares of $10 each, and its business was that of buying, selling, and -dealing “in all kinds of farm and dairy products, cattle, swine, sheep, poultry, dry goods, boots and shoes, groceries, hardware, farm machinery, lumber, twine, drain tile, stone, brick, and all kinds of building material, -grain and real estate and dealing in…
1Opinion of the CourtLadd, J.
The plaintiffs Avere directors of the Grain *1309Growers Incorporated Oo-operative Association of Melvin, Iowa. It was incorporated in 1905; and, as its capital was less than $5,000, and it might not become indebted for more than two thirds of this, and in no event for more than $5,000, the directors conceived the idea of themselves borrowing money, and operating the enterprise in large measure with money so borrowed. Whether they realized that, in so doing, they were involving the corporation in debt in excess of the limitations mentioned, does not appear; but in this way, the amount of…
2Cases cited2 opinions
- Crapo v. BrownSupreme Court of Iowa · 1875
- Knight v. WatersSupreme Court of Iowa · 1863