Aurora Agricultural & Horticultural Society v. Paddock

Citations

• 80 Ill. 263

Syllabus

<p>1. Corporations—-power to mortgage. The power to mortgage, when not expressly given or denied to a private corporation, will be regarded as an incident to the power to acquire and hold real estate and to make contracts.</p> <p>3. Same—power to alien properly. All private corporations have an incidental right to alien or dispose of their lands and personal property ■without limitation as to objects, unless restrained by the act under which they are organized, or by statute.</p> <p>3. Same—power of directors to mortgage. Even if the directors of a private corporation have no authority to borrow money and mortgage its real estate for its repayment, yet, if the stockholders ratify their action by approving the minutes of their proceedings before the loan is effected, and after-wards receive the benefit of the loan and pay interest thereon, the stockholders will be estopped from questioning the authority of the directors on bill to foreclose the mortgage.</p>