President & Trustees v. San Diego & Los Angeles Railroad

Citations

• 44 Cal. 106
• 1872 Cal. LEXIS 162

Syllabus

<p>Act Authorizing a City to Convey its Lands.—An Act of the Legislature authorizing and empowering the Board in which the corporate authority of a city is vested, to convey to a railroad company “ not to exceed five thousand acres of the land of the city, or such parcels thereof as they may deem advisable, and upon such terms and conditions as they may determine,” even if mandatory, so far as the act of conveyance is concerned, vests the Board with discretionary power as to the quantity to be conveyed, and the terms of the conveyance.</p> <p>Duty of Officer of a City Intrusted with Conveyance of its Lands.—If an Act of the Legislature, authorizing the Board exercising the corporate authority of a city to convey its lands to a corporation, vests the Board with any discretion in the matter, a member of such Board, who is a stockholder or Director in the corporation, cannot act officially in the Board in relation to the matter, or in making the conveyance, and if he does, and his vote or signature to the deed was requisite to complete the conveyance, the deed will beset aside as a cloud on the title.</p> <p>Duty of Trustee as to Trust Property.—The Board in which the corporate authority of a city is vested, is intrusted witli its property in a fiduciary capacity, and its members cannot bargain with reference to it, with a corporation in which they hold stock.</p> <p>Majority of Board May Exercise its Authority.—If an Act of the Legislature authorizes the Board exercising the corporate authority of a city to convey its lands, a majority of the members of such Board may make the conveyance.</p>