Farrier v. Ritzville Warehouse Co.

Citations

• 116 Wash. 522
• 199 P. 984
• 1921 Wash. LEXIS 961

Syllabus

<p>Corporations (26, 27)—By-Laws—Amendment. A by-law of a corporation, discriminating, within reasonable limits, respecting dividends payable to stockholders who deal with the corporation and thereby increase its profits, and those who do not deal with it, is a valid exercise of corporate power.</p> <p>•Same (69, 70)—Dividends—Vested Rights oe Stockholders. Where a corporate by-law gave stockholders a ten per cent dividend on the par value of their stock andN distributed the balance of the net profits to the stockholders hauling and selling wheat to the company, an amendment of the by-law reducing the dividend of the common stockholders to seven per cent against their protest was invalid as an interference with vested rights.</p> <p>Same (69, 70). Stockholders having a vested right in dividends, are not estopped to object to an amendment of the by-laws affecting their rights, where they acted promptly, although they failed to act and are estopped as to a prior amendment.</p>