Edgar Collegiate Institute v. People ex rel. Hardy

Citations

• 142 Ill. 363

Syllabus

<p>1. Corporation — dissolution for non-user and abuse of its franchise. Where a corporation chartered in 1867, “for the purpose of maintaining an institution of learning,” in which all the branches of a classical, literary and scientific education might be taught, ceased to be an institution of learning for ten years before the institution of a proceeding to declare its charter forfeited, and sold the buildings, which were removed, and attempted to sell its lands, abandoning the intention of continuing the corporation for the purposes originally intended, it was held,, that a judgment of ouster against the corporation was proper.</p> <p>2. The grant of a charter, or right to be a corporation, is upon the implied condition that the grantee shall act up to the end and design of its creation. Hence, through neglect or abuse of its franchise á corporation may forfeit its charter as for condition broken or for a breach of trust.</p> <p>3. ‘Where a misuser is relied on as the foundation for proceedings to procure a forfeiture of the corporate franchise, it must appear that there has been such a neglect or disregard of the corporate trust, or such a perversion of it to private purposes, as in some manner to lessen the utility of the corporation to those for whose benefit it was instituted, or work some public injury.</p>