Equity Co-operative Packing Co. v. Hall

173 N.W. 796, 42 N.D. 523, 1919 N.D. LEXIS 174
CourtNorth Dakota Supreme Court
DecidedJune 13, 1919
StatusPublished
Cited by2 cases

This text of 173 N.W. 796 (Equity Co-operative Packing Co. v. Hall) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equity Co-operative Packing Co. v. Hall, 173 N.W. 796, 42 N.D. 523, 1919 N.D. LEXIS 174 (N.D. 1919).

Opinions

Grace, J.

This is an appeal from a certain order overruling a demurrer by defendant to an application for an alternative writ of mandamus and the granting of the writ, which required the defendant, Thomas Hall, as secretary of state, to file in his office certain amended articles of incorporation of the plaintiff upon the payment of a filing fee of $5 and the further sum of $6 for recording the same.

The Equity Co-operative Packing Company was organized on about the 4th of October, 1916, and its articles of incorporation were filed in [526]*526the office of the secretary of state, October 25, 1916. The purpose of the incorporation was to build and operate packing plants, slaughterhouses, stockyards, etc., and to buy, sell, 'and deal in cattle,- hogs, sheep, poultry, etc. It was also the purpose of the corporation to carry on a business of wholesale and retail dealers in meat products, etc. Its principal place of business was at Fargo, North Dakota; the term of its existence was twenty years. The number of directors was fixed at ¡seven. The articles of incorporation further named certain persons who were appointed to serve until the successors were elected and qualified, and they signed the articles of incorporation. The amount of capital stock was fixed at $1,000,000 divided into 40,000 shares of par value of $25 each.

At the time of the incorporation, a filing fee of $532 was paid. In January, 1919, the plaintiff decided to increase his capital stock from $1,000,000 to $3,000,000. It held a meeting of its stockholders January 17th; at that meeting 31,744 shares of stock, distributed among 5,994 stockholders, which constituted a majority of all the stockholders, voted to amend the articles of incorporation by increasing the capital stock from $1,000,000 to $3,000,000. On January 21, 1919, the plaintiff presented to the defendant, the secretary of state, a copy of the amendment and also the sum of $11, and requested the secretary of state to file and record such amendment, which the defendant refused to do on the ground that if the plaintiff was an ordinary, and not a co-operative corporation, the statutory filing fee for the amendment would be $1,000 and in addition thereto a recording fee of $6, in all $1,006, instead of the sum of $11 as claimed by plaintiff.

In the application for alternative writ of mandamus, the following allegations are set forth:

“That it was the intention and purpose of the original incorporators of the Equity Co-operative Packing Company, a corporation, and the persons who signed the articles' of incorporation of said corporation, to organize a co-operative corporation pursuant to chapter 92 of the Session Laws of North Dakota for the year 1915; and the attorneys who were employed by said incorporators for the purpose of preparing the articles of incorporation of said corporation were informed that the incorporators desired and intended to organize a co-operative corporation pursuant to chapter 92 of the Session. Laws of North Dakota [527]*527for the year 1915, and said attorneys were instructed to prepare articles of incorporation pursuant to chapter 92 of the Session Laws of North Dakota for the year 1915; that none of the original incorporators of said corporation or the persons who signed the articles of incorporation of said corporation are lawyers or versed in the law, and did not know that chapter 92 of the Session Laws of North Dakota for the year 1915 required the association together of not less than twenty-five persons to form a co-operative corporation pursuant to such statute, And were not informed by the attorneys who prepared the articles of incorporation for said corporation that at least twenty-five original incorporators were necessary under said statute to incorporate a corporation pursuant to said statute; and when said incorporators signed the articles of incorporation for said corporation, and filed said articles of incorporation in the office of the secretary of state for the state of North Dakota, they believed that they were incorporated' pursuant to chapter 92 of the Session Laws of North Dakota for the year 1915 And intended to form a corporation pursuant to said statute; but because said incorporators were not informed as to the number of persons necessary to form a co-operative corporation pursuant to said statute, .the articles of incorporation of said corporation were signed by only seven persons, and contains nothing indicating an intention to form a co-operative corporation; that the original by-laws adopted by the stockholders of said corporation provide for the distribution of profits of said corporation in part on the basis of and in proportion to the Amount of property bought from or sold to members of said corporation and to other customers, and of labor performed and other services rendered to said corporation, as is shown by a copy of the original "by-laws of said corporation hereto attached marked exhibit “A” and made a part of this affidavit and application; that all of the shares of the capital stock of said corporation which have been sold, have been ¡sold upon the statements and representations of the officers and agents ■of said corporation that the same was a co-operative corporation; and all of the stockholders of said corporation believed the same to be a ■co-operative corporation which will pay patronage dividends to cus•tomers and patrons.”

It also appeal’s from the application that a special meeting of the ¡stockholders of the corporation was had on the 29th day of October, [528]*5281918, for the purpose of voting upon accepting the benefits of chapter 97 of the Session Laws of North Dakota for the year 1917, and a majority of all the stockholders did vote to accept the benefits thereof, and to be bound by the provisions of said act pursuant to § 16 thereof; that on the 30th day of October, 1918, said corporation filed in the office of the secretary of state of the state of North Dakota a written declaration signed and sworn to by the president and secretary of said corporation, stating that at said special meeting of stockholders, said corporation had by majority vote of all the stockholders decided to accept the benefits of and be bound by the provisions of said chapter 97.

The claim of plaintiff and respondent is that, while the articles of incorporation were in form those of a general corporation, that it was in fact the purpose and intention of the incorporators to incorporate as a • co-operative corporation under chapter 92 of the Laws of 1915, and that it clearly appears that such business is of a co-operative character as disclosed by an examination of its by-laws and other sources of information; that therefore the plaintiff is permitted under chapter 97 of the Session Laws of 1917 to cure the error, if any, in its incorporation, by taking the proceedings for that purpose required by said chapter, and that plaintiff has taken all such proceedings and has therefore cured such error.

The defendant demurred to the application. He thus admits all the material allegations therein.

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Related

International Milling Co. v. Reierson
225 N.W. 218 (South Dakota Supreme Court, 1929)
Mohall Farmers' Elevator Co. v. Hall
176 N.W. 131 (North Dakota Supreme Court, 1920)

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Bluebook (online)
173 N.W. 796, 42 N.D. 523, 1919 N.D. LEXIS 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equity-co-operative-packing-co-v-hall-nd-1919.