Gilbert v. Hole

Citations

• 2 S.D. 164
• 49 N.W. 1
• 1891 S.D. LEXIS 16

Syllabus

<p>'1. The rule is general that, where a corporation is authorized for some purposes, or to a limited ' extent, to take conveyance of and hold real estate, a deed of lands for other purposes, or beyond the limit allowed, is not absolutely void, but passes the title as between the parties, subject^only to be inquired into in a direct proceeding by the state.</p> <p>2. Whether a deed to a corporation, forbidden by its charter or the law under which it is organized to take or hold real estate for any purpose, is void, or only voidable at the instance of the state, is not involved in this case, and is not decided. #</p> <p>S. A corporation organized for the purpose, among others stated, of buying and selling personal property, is to that extent at least organized for a legal purpose, and may, under Section 7, art. 17, of the constitution, take and hold such real estate as may “be necessary and proper for its legitimate business;” and, under the rule first above announced, whether such corporation has taken the title to lands described for a purpose other than that allowed by the constitution is a matter between the government of the state and the corporation.</p> <p>4. An undisputed allegation in the complaint, that the land described was purchased by such .corporation for the “sole purpose of speculation and profit,” does not withdraw the case from the dominion of the rule. It is a question of the power of the corporation to receive title; not a question of the conditions under which such power may be exercised, or whether in any case such conditions have been met.</p> <p>(Syll abus by the Court.</p>