Case ID: ohio-st_99/html/0151-01.html
Source: Caselaw Access Project
Author: {"author": "By the Court.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

The Cyclone Drill Co. v. Zeigler, Admx., et al.
    
      Corporations — SaleI of entire property — Section 8710 et seq., General Code — Notice to stockholders mandatory — Rights of objecting stockholders — Duty of purchaser before buying property.
    
    (No. 15946
    Decided November 26, 1918.)
    Error to the Court of Appeals of Wayne county.
    
      Messrs. Hidy & Sanderson and Mr. John Logan, for plaintiff in error.
    
      Messrs. Weygandt & Ross, for defendants in error.
   By the Court.

A corporation organized under the laws of this state has no authority to sell its entire property or assets, except as provided by Section 8710 et seq., General Code.

The provision of Section 8711, General Code, requiring notice to stockholders, is mandatory. It is the right of each stockholder objecting to the sale, that every other stockholder should be notified of the meeting called to ratify the agreement of sale made between the directors of the corporation and the purchaser, and that each stockholder be given an opportunity to express his dissent or approval thereof.

It is the duty of a purchaser of the entire property and assets of a corporation to ascertain, before making such purchase, whether the corporation has fully complied with the statutes authorizing it to make such sale, otherwise the purchaser takes the corporate property subject to the rights of the stockholders not consenting thereto.

Judgment affirmed.

Nichols, C. J., Newman, Jones, Matthias, Johnson and Donahue, JJ., concur.

Wanamaker, J., not participating.