Steele v. Farmers & Merchants Mutual Telephone Ass'n

Citations

• 95 Kan. 580
• 148 P. 661
• 1915 Kan. LEXIS 259

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Private Corporations — By-Laws Restricting Transfer of Stock Invalid — Mo/ndamus. By-laws of a private corporation organized under the provisions of chapter 23 of the General Statutes of 1909 (§§ 1695-1936), which require election to membership in the corporation by the board of directors before a transfer of stock will be registered, or which require a stockholder to offer his stock to the corporation at not to exceed par before selling elsewhere, or which otherwise impair the right to dispose of shares of stock as personal property, except that all previous assessments must be paid' and the transfer must be made on the books of the corporation according to such reasonable formalities as may be prescribed, are void, considered either as by-laws of the corporation or as contracts with stockholders.</p> <p>2. Same — Corporations—Purchasing Their Own Capital Stock.. The statutes of this .state forbid private corporations organized under the statute referred to to purchase their own capital stock unless necessary to obtain or secure payment of debts or dues owing the corporation.</p>