Osage City Cemetery Ass'n v. Hanslip

Citations

• 82 Kan. 20
• 107 P. 785
• 1910 Kan. LEXIS 189

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Corporations — Power to Issue or Sell Stock — Cemetery Assodation. The charter of a cemetery association, incorporated in 1876, for the purpose of laying out, platting and maintaining a public cemetery or place of sepulture, contained a provision that the capital stock of the association should be $600, to be divided into sixty shares of. $10 each. The full amount of the stock was subscribed and issued, and a board of directors was chosen who had general supervision of the affairs of the association. The association purchased twenty acres of land, which was conveyed to it by the owner to be used as a cemetery, in payment for which he received thirty shares of the stock, and the association was to pay him one-half of the receipts from the sale of lots and expend at least $300 in improving the land as a cemetery. The land was afterward platted, lots were sold for the purpose of sepulture, and it has ever since been maintained as a cemetery. Held, following Davis v. Coventry, 65 Kan. 557, that the association is a public and not a private corporation, and that it had no authority to issue or sell stock.</p> <p>2. -Deeds — Consideration—Executed without Authority— Cancellation. In 1904 E. W. Hanslip became the owner of all except one of the shares of stock issued by the association referred to in the first paragraph, and, at a meeting of the board of directors, the officers of the association were authorized to execute and did execute deeds conveying to him all the property of the association, consisting of the cemetery lots unsold and twenty acres of unplatted land. The only consideration for the conveyances was that Hanslip was to transfer to the association his shares of stock and cancel an indebtedness which he claimed the association owed him on account of services rendered. Held, in an action by the association to cancel the conveyances, that they were void for want of consideration and because executed without authority.</p> <p