City Electric Street Railway Co. v. First National Exchange Bank
Supreme Court of Arkansas
Appeal from Pulaski Circuit Court. Robert J. Lea, Judge. The answer presented a good defense, and the demurrer should have been overruled. 1. Persons dealing with officers of corporations are put upon notice as to the powers of such officers.
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Appeal from Pulaski Circuit Court. Robert J. Lea, Judge. The answer presented a good defense, and the demurrer should have been overruled. 1. Persons dealing with officers of corporations are put upon notice as to the powers of such officers. Morawetz on Corp. sec. 691. Under secs. 1330, 1335, Sand.' & H. Dig. the management of the affairs of corporations are by law placed under the absolute control of a majority of the board of directors, when convened according to the by-laws. 2. Our statute makes it a crime for the president and secretary to issue a note in the name of the company, unless…
1Opinion of the CourtWood, J.
The bank sued the-railway company on a negotiable promissory note purporting to have been executed by the company, payable to H. G. Allis and Geo. R. Brown, and indorsed by them before maturity for value, and delivered to the First National Bank, and by it indorsed and delivered to the plaintiff.
The answer, in substance, sets up that the defendant was a corporation, organized under the laws of Arkansas (chap. 47, Sand. & H. Dig.); that the note was executed by the president and secretary of the defendant corporation, without any authority from or knowledge of its board of directors; that the…
2Cases cited18 opinions
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