Bankers' Union of the World v. Crawford

Citations

• 67 Kan. 449
• 73 P. 79
• 1903 Kan. LEXIS 274

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Corporations — Powers. A corporation has only such powers as are expressly conferred upon it by its charter, or such as are necessarily implied therefrom, to enable it to carry out the objects of its creation. The exercise of all other powers by it is ultra vires and void.</p> <p>2. Fraternal Insurance — Consolidation. No authority exists in the statute for the consolidation of fraternal beneficiary associations.</p> <p>3. -Payment to Members and Beneficiaries Only. Fraternal beneficiary associations created under the statutes of this state have power to make payment of benefits only to their members, or the beneficiaries named by such members, such payment to be made out of funds contributed by members for that purpose.</p> <p>4. - Contract of Consolidation Held, Void. A contract by one such association to pay a death loss of another like association already accrued, in consideration of the transfer to it of the membership and offices of such other association, is unauthorized by the statutes of the state, ultra vires, and void.</p> <p>5. --AssociationNotJSstoppedtoPleadUltraVires. Such an association wfilch has assumed the payment of death losses of another association already accrued is not estopped to deny the ultra vires character of such assumption by reason of the fact that large numbers of the latter association were induced to become members of the former; nor by the further reason that, by the resignation of the officers of the latter association, it was placed in the hands of officers named by those who were managing the former.</p>