Thompson v. Natchez Water & Sewer Co.

Citations

• 68 Miss. 423

Syllabus

<p>1. Corporations. Power of directors. Place of meeting. Issuance of bonds.</p> <p>Unless restrained by its charter or by-laws, or by the law of the state creating it, the directors of a corporation have power to meet in another state, and to issue bonds and secure them by mortgaging the corporate assets, and their acts in so doing are not rendered invalid because done in pursuance of an order of stockholders illegally assembled.</p> <p>2. Same. Receiver in aid of mortgage. When appointed before default.</p> <p>On a bill filed for that purpose by holders of bonds issued by a water and sewer company, and secured by mortgage of its property, revenues and franchises, a receiver may be appointed before maturity of the debt, if default is imminent and unavoidable, and if it is necessary to prevent a destruction of its business, and protect its property against attachments and executions in favor of general creditors.</p>