Salt Lake Herald-Republican | 1910-04-06 | Page 15 | Only Board Can Bind Corporation

ONLY BOARD CAN BIND CORPORATION Supreme Court Hands Down Decision Limiting Powers of Officers Neither the president or other officers cers or director of a corporation has the right to enter into an agreement without the consent of the board sit sitting sitting sitting ting as a board according to an opinion opinion ion of the supreme court down yesterday which affirms Judge George Georgo GeorgeG G Armstrong of the tho Third district court In the appeal case of Adolph and Richard Connary against the tho Pine Tree Mining Milling com corn company company pany Justice F E Eo Frick writes the opinion with his associates of ot the su supreme supreme preme premo bench concurring Lochwitz and Connary sued the min mIs mining minIng ing company for breach of contract They had leased the mining property of ot the company for of which was to have been paid on or before September 1 I 1907 But before the time for the first payment fell felt due an agreement was reached be the leasers and the president of the company whereby the first pay payment pa ment was vas set aside and the leasers called upon to pay pa the tho full amount of by December 1 1907 This was wason wason wason on a n contract entered into between the two men and the president of the com corn company company pany At the next meeting of the directors the tho board refused to indorse the action of ot the president and re ye revoked revoked voiced the contract It was then that and Con Connary Connary Connary nary brought suit ort oil a breach of ot con contract contract contract tract Judge Armstrong granted a nonsuit asked for by for the company and the supreme court takes the tho same view affirming the trial court courtIn courtIn In affirming the decision of the trial court the supreme court holds that a contract cannot be made by directors of ofa ofa ofa a corporation ration or its officers as Individuals Individuals as ns would be gained by canvass In their votes but that the board of directors must enter Into contracts and transact other business only when meeting as IlS a board of directors officially officially At a sitting of the supreme court yesterday the petition for a rehearing of the suit of J H IL Kurtz Kurta against the Ogden Canyon Sanitarium and others was denied Under the former ruling of the supreme court Kurtz was sue suc successful easeful in gaining money from the san sanitarium sanItarium sanItarium company which had been loaned lo ned by hy his brother while he was receiver The petition for a rehearing was made by attorneys for the sanitarium com corn company company pany