Albach v. Fraternal Aid Union

Citations

• 100 Kan. 511
• 164 P. 1065
• 1917 Kan. LEXIS 362

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Fraternal Beneficiary Corporations — Merger—Statutory Authority. Chapter 210 of the Session Laws of 1918 (Gen. Stat. 1915, §§ 5418-5420) authorizes the consolidation or merger of fraternal beneficiary corporations under the supervision of the superintendent of insurance and with his approval.</p> <p>2. Quo .Warranto — Legality of Merger of Two Corporations — Proper Parties to Bring Action. A fraternal insurance corporation of Kansas and a fraternal insurance corporation of Colorado effected a merger pursuant to the statutes of Kansas and Colorado under the supervision of the insurance departments of both states and with their approval. Certain members and insurance certificate holders of the Kansas corporation filed an action charging irregularities, fraud, etc., in bringing about the merger, praying for the appointment of a receiver and for a segregation of the assets and affairs of the merged corporations, and to restore the independence of the Kansas corporation. Held, that where there is no powerful and peculiar equity involved, an action of such gravity can only be commenced in the name of the state on the relation of its responsible legal representative, and that the plaintiffs as private individuals can not maintain it.</p>