Taylor v. Griswold

14 N.J.L. 222
CourtSupreme Court of New Jersey
DecidedFebruary 15, 1834
StatusPublished
Cited by2 cases

This text of 14 N.J.L. 222 (Taylor v. Griswold) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Griswold, 14 N.J.L. 222 (N.J. 1834).

Opinion

The opinion of the court was delivered at this term.

Hornblower, C. J.

This is a proceeding under the fourth section of the act to prevent fraudulent elections by incorporated companies, &e. passed the 8th of December, 1825. On the 8d day of August last, an election was held for directors, &c. of the Passaic and Hackensack Bridge Company, which resulted in the choice of George Griswold and others. An application is now made by John Taylor and others, to set aside that election on three distinct grounds, viz :

1. That notice of the time and place of election was not given according to law.

[224]*2242. That the inspectors acted contrary to law, in rejecting the votes that were offered by proxies; and

3. That the inspectors also erred, in allowing to each stockholder but one vote, instead of a vote for each share owned by him.

Each of these objections will be considered in the order above stated.

First. Was due and legal notice given of the time and place of holding the election ?

At a meeting of the stockholders held on the 4th August, 1821, a by-law was passed, prescribing the mode in which all future meetings of the stockholders should be convened ; and it is admitted that the meeting held on the 3d of August last, was called and advertised in conformity thereto. But, it is insisted, that the stockholders had no right to pass any by-law to that effect, because the charter has prescribed the mode in which such meetings are to be called, and how notice shall be given. The 3d section of the act incorporating the company, after naming the first president and other officers, proceeds as follows: “ Which president, &c. shall' continue in office during the term of one year from the time of passing this act, or until other/persons shall be appointed in their stead, by a majority of the stockholders, at a meeting of the said stockholders to be convened for that purpose, which meeting may be called by any three stockholders, provided fifteen days notice of the time and place of the said meeting to be given in writing to each of the said stockholders residing in this state or in the city of New York, or left at his or her usual place of abode.” And then the following clause is added; - “ and also that it shall and may be lawful for the said corporation, or a majority thereof, to appoint annually, or at any time they shall deem proper, a president, secretary, &c. or any other officer or officers they shall judge necessary.”' If the legislature have in this section laid down and prescribed the manner, in which all meetings of the stockholders for the purpose of choosing officers shall be called, then it must be conceded, that the by-law of the 4th of August, 1821, is illegal and void. Angell & Ames on Corporations, 195 ; Child v. The Hudson Bay Company, 2 Pr. Williams, 207. But [225]*225if the legislature have only prescribed the manner in which the first meeting for the choice of officers should be convened, then it is equally clear, that the corporation had, by implication, the right to prescribe the mode by resolutions or by-laws, in which subsequent, meetings should be called for the purpose of elections. Angell & Ames on Corporations, 63, &c. Newling v. Francis, 3 T. R. 189; Rex. v. Westwood, 7 Bing. 1 ; S. C. in 20 Eng. Com. Law Rep. 11, 59.

This presents a question of construction: and we have nothing to lead us to the mind and intention of the legislature, but the language they have used, in connection with the object they had in view. Having erected the proprietors into a body politic, and appointed the first set of officers, it was natural and proper for the legislature to point out a mode in which the corporation might supercede or remove those officers and appoint others in their places, as well as authorize subsequent changes, and a succession of officers to be kept up. The officers named in the charter, were to continue in office one year, or until others should be elected at a meeting to be convened for that purpose. For what purpose ? Obviously, for the purpose of electing others in the places of those named in the act; and then the charter prescribes the mode in which that special and particular meeting shall be called; “ which meeting may be called by any three stockholders,” &c.

This was a just and reasonable provision ; for, the officers named in the charter, even if they had the power to convene a meeting for the choice of others, might have neglected to do so, or have thought proper not to exercise such power, and thus have perpetuated themselves in office. The legislature having thus organized the company, and made provision for removing the first set of officers, upon the call of any three stockholders, superadded the power to appoint, annually, or oftener, if they thought proper, a president, &e. or such other officers as they might judge necessary; leaving the time, place, and manner of giving notice thereof, to be regulated by the company. This power given by the latter clause of the section, to the “ corporation, or a majority thereof,” "annually, or at any time, to appoint, &e. is utterly inconsistent with the idea, that all meetings are to be called in the manner pointed [226]*226out in the former part of the section. The call, there contemplated, is the voluntary and individual act of any three stockholders ; but the authority given in the latter clause, is to be-exercised by, and to be, the act of “ the corporation or a majority thereof.” Upon any other construction, no new or other officers could be appointed by the corporation ; and any three stockholders, might, at any time, convene a meeting for the purpose of an election, contrary to the will of the corporation, acting in its collective and legislative capacity, lawfully expressed.

I am therelore of opinion, the corporation had a right to make a by-law, regulating the mode of calling meetings for the purpose of electing officers. The by-law in question, is a reasonable one ; not repugnant to the charter, nor to any law of the state. It is, therefore, valid; and the meeting on the 8d of August last, having been called in conformity to it,, the'first objection is not well taken, and must be overruled.

Second. Did the inspectors of the election, act contrary to law, in rejecting the proxies ?

If corporations have a right to dispense with the personal attendance of their members, to conduct their affairs, and decide their elections by the instrumentality of proxies or attornies, we must find it in the elementary principles of the institution ; in the nature, design, and fundamental constitutions of corporations ; or in some new and positive enactment or grant of the creating power. In other words, we must find such authority among the incidental rights and attributes of all corporate bodies, or in some special power granted by the government to the particular corporation in question.

The right of voting bjr proxy, in this case, is claimed by the applicants ; first, upon general principles; and secondly, upon the ground of an existing by-law, or the usage and practice of the company.

1st, The first inquiry then is,' whether, upon general and common law principles, the members of any

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Cite This Page — Counsel Stack

Bluebook (online)
14 N.J.L. 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-griswold-nj-1834.