Star Line of Steamers v. Van Vliet
Michigan Supreme Court
Error to Superior Court of Detroit. Assumpsit. Defendant brings error. Stockholders of a corporation have no authority to contract or appoint by a resolution a committee authorized to contract therefor, McCullough v. Moss 5 Den. 567; Conro v. Port Henry Iron Co. 12 Barb. 27; Cashwiler v. Willis 33 Cal. 11; Cammeyer v. United German Churches 2 Sanf.
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Error to Superior Court of Detroit. Assumpsit. Defendant brings error. Stockholders of a corporation have no authority to contract or appoint by a resolution a committee authorized to contract therefor, McCullough v. Moss 5 Den. 567; Conro v. Port Henry Iron Co. 12 Barb. 27; Cashwiler v. Willis 33 Cal. 11; Cammeyer v. United German Churches 2 Sanf. Ch. 186; the stockholders cannot interfere with the directors in the management of the affairs of the corporation, 1 Bedf. on Bailways 87, n. 1; Ang. & Am. Corp. § 279; Green’s Brice’s Ultra Vires 390, n.; where several persons are appointed to…
1Opinion of the CourtGraves, J.
The Star Line of Steamers is a corporation organized under chapter 83 of the Compiled Laws, and at a meeting of the stockholders two of their number, Messrs. Toulmin and Ketchum, were appointed a committee to employ two expert accountants to investigate the affairs, books and accounts of the company, and report the results. Mr. Toulmin engaged the defendant in error and agreed that ■ his compensation should be graduated by allowing a certain sum per hour for himself and a certain other amount for an assistant. At least such seems to be a fair construction of the arrangement, and it is the…
2Cited by4 opinions
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