Blair v. Metropolitan Savings Bank

Citations

• 27 Wash. 192
• 67 P. 609
• 1902 Wash. LEXIS 378

Syllabus

<p>CORPORATIONS-UNAUTHORIZED ACTS OF OFFICERS-RATIFICATION.</p> <p>Although a loan made hy a corporation may have been beyond its charter powers and a sale of the note and mortgage obtained upon such loan, with a guaranty of payment, may have been unauthorized by the hoard of directors, yet the corporation will he hound thereby on the theory of ratification, where its articles of incorporation were afterwards amended so as to legalize transactions of that character and subsequent to such amendment the liability of the corporation on such guaranty was recognized by it and provision made hy its hoard of directors to meet its liability hy entering into a new agreement with its obligee.</p> <p>SAME-BY-LAWS-ABROGATION BY NON-USAGE.</p> <p>Where a by-law of a corporation has been disregarded hy the corporate officers for a length of time sufficient to bring knowledge thereof home to the stockholders and raise a presumption of their acquiescence, such non-usage will work an abrogation of such by-law.</p>