Magowan v. Groneweg

Citations

• 16 S.D. 29
• 91 N.W. 335
• 1902 S.D. LEXIS 74

Syllabus

<p>A mercantile corporation had hut two directors, one of whom was also general manager and secretary, and owned half or more of the stock. His wife was also a stockholder. The other director was also president. and owned one-fifth of the stock. The directors never had a regular meeting. The sole management of the business was left to the general manager. He sold the entire stock of merchandise and fixtures; his wife being present and apparently assenting thereto/and the bill of sale being signed by him as secretary and treasurer and by the president. Oomp. Laws, § 4719, provides that ‘‘the law neither does nor requires idle acts.” Held, that the fact that the stockholders and directors did not formally meet and authorize the sale did not render it invalid.</p>