Page:North Dakota Reports (vol. 48).pdf/571



Appeal of both parties from the District Court of Cass County, Cole, J.

Judgment affirmed.

Young, Conmy & Young, for defendants-appellants.

“Before there can be a de facto corporation, there must be a valid Jaw under which a corporation may be formed, a bona fide attempt to incorporate under it, and an actual exercise of corporate powers.” Jennings v. Dark, 92 N. E. 778, 782, 175 Ind. 332; Gillette v. Aurora Ry. Co. 81 N. E. 1005, 1009, 228 Ill. 261; Marshall v. Keach, 81 N. E. 29, 227 Ill. 35; 118 Am. St. Rep. 247; 10 Ann. Cas. 164, citing American Trust Co. v. Minnesota & N. E. R. Co., 42 N. E. 153, 157, Ill. 641; Bushnell v. Consolidated Ice Mach. Co. 27 N. E. 596, 138 Ill. 67; 1 Cook, Stock. Stockh. & Corp. (3d ed. § 234).

“The requisites to constitute a corporation de facto’ are three: (1) A charter or general law under which such a corporation as it purports to be might lawfully be organized; (2) an attempt to organize thereunder; and (3) actual user of the corporate franchise.” Whipple v. Tusworth, 99 S. W. 86, 89, 81 Ark. 391, citing Tulare Irrigation Dist. v. Shepard, 22 Supp. Ct. 531, 185 U. S. 1, 46 L. ed. 773; Clark Corp. 90; Finnegan v. Noerenberg, 53 N. W. 1150, 52 Minn. 239, 18 L. R. A. 778, 38 Am. St. Rep. 552; Stout v. Zulick, 7 Atl. 362, 48 N. J. Law 599; Eaton v. Walker, 43 N. W. 638, 76 Mich. 579, 6 L. R. A. 102; Swartwout v. Michigan Air Line R. Co. 24 Mich. 393; McFarlan v. Triton Ins. Co. (N. Y.) 4 Denio 392; Spring Valley Waterworks v. City of San Francisco, 22 Cal. 434; Mackall v. Cheaspeake & O. Canal Co. 94 U. S. 208, 24 L. ed. 161; 3 Cook Corp. (4th ed.) § 637.

“A corporation, after the expiration of the period fixed for its existence in the law under which it is organized, is not even a de facto corporation, and its existence as a corporation may be attacked collaterally.” Clark v. American Canal Co. (Ind.) N. E. 1083; 1 Clark and Marshall on Corporations, § 82c (4) p. 247, Vol. 2 § 305; Guaga Iron Co. v. Dawson, 4 Blackf 202; Morgan v. Lawrenceburg Ins. Co. 3 Ind. 392, 65 Am. Dec. 768; Broadley v. Rappell, 113 Mo. 545, 32 S. W. 645, 34 S. W. 841, 54 Am. St. Rep. 685; Krutz, v. Paola Town Co. 20 Kan. 491, 24 Pac. 977; Supreme Lodge of Knights of Pythias v. Weller, 93 Va. 605, 25 S. E.