McCannon v. Lusk-Mitchell Newspapers, Inc.

In this action] plaintiff seeks to recover a judgment against the defendant corporation for money alleged to be due under its contract to purchase shares of its own stock. The answer and counterclaim of defendant are upon the theory that the contract is ultra vires the corporation, and illegal and void as against public policy.) Findings, conclusions and(judgment were for plaintiff) and the defendant corporation appeals.)Power to purchase their own shares from surplus funds is expressly granted corporations of this state by statute, SDC 11.0303.'] The statute reads as follows: “A corporation…