Crum's Appeal

Citations

• 66 Pa. 474
• 1871 Pa. LEXIS 62

Syllabus

<p>An oil company was formed, with $4000 capital in shares, which was not to be increased without the consent of a majority of the stockholders, no authority was given to the managers to borrow money. The president bought a lot for oil operations and he and others borrowed money for its payment, on their individual credit; the managers passed a resolution ratifying the transaction, money was paid by the individuals borrowing it. Held, that the managers having no authority to' borrow money, or to increase the capital, their ratification was ineffectual and the other stockholders were not bound to contribute to the payment of the money.</p>