Tafft v. Presidio & Ferries Railway Co.

Citations

• 3 Cal. Unrep. 152
• 22 P. 485
• 1889 Cal. LEXIS 1108

Syllabus

<p>Corporate Stock—Transfer—Conversion.—If the Attorney in Fact of a stockholder presents the 'certificate of stock, together with a power of attorney from the stockholder giving him full authority to deal with the stock, and the corporation’s officers are ignorant of any intention on the part of the attorney to misappropriate the stock, the corporation will not be guilty of conversion simply by issuing another certificate in the name of the attorney, who appropriates the stock wrongfully.1</p> <p>Corporate Stock—Transfer—Conversion.—The Fact That the Attorney was also a director of the corporation does not warrant the presumption that the corporation had notice of his intention to convert the stock to liis own use, as he assumed to act, not for the corporation, but for his principal.</p> <p>Corporate Stock—Transfer—Conversion.—The Lack of the Owner’s Indorsement on the certificate was not inconsistent with the right of the attorney to cause the stock to be transferred to himself.</p> <p>Corporate Stock—Transfer—Conversion.—The Neglect of the Officers to require an indorsement of the certificate is only nonfeasance, and is no evidence of conversion.</p> <p>Corporate Stock—Transfer—Conversion.—It is not the Duty of the Officers of a corporation to inquire into the motives of an attorney in fact, having full power to transfer stock, for desiring it to be transferred to himself.2</p>