Case Name: Matter of the Election of Directors of The Rapid Transit Ferry Co.
Court: New York Supreme Court
Jurisdiction: New York
Decision Date: 1897-02
Citations: 19 Misc. 409
Docket Number: 
Parties: Matter of the Election of Directors of The Rapid Transit Ferry Co.
Judges: 
Reporter: New York Miscellaneous Reports
Volume: 19
Pages: 409–410

Head Matter:
Matter of the Election of Directors of The Rapid Transit Ferry Co.
(Supreme Court, Kings Special Term,
February, 1897.)
Corporations — Elections.
A by-law of a stock corporation which provides that “ a majority of the stock present in person, or by proxy at any meeting . of the' stockholders shall constitute a quorum ” means that it is necessary that a majority of the stock of the company shall be present in person or by proxy to, make a quorum, and an election at which a majority of the stock is not so represented is invalid'.
Motion to set aside the election of directors at the election of 1895 and 1896, on the ground that a majority of the stock of the corporation was not represented in person or by proxy.
Julien T. Davies and W. N. Dykman, for motion.
Albert B. Boardman, opposed.

Opinion:
Gaynor, J.
By general law, the stockholders present in person or by proxy at a meeting of stockholders constitute a quorum. The General Corporation Law, however, allows the directors to change this by by-law, and fix the amount of stock which must be represented in order to make a quorum. § 11, " In this company the following by-law was passed, viz.:' "A majority of the stock present in person or by proxy at any meeting of the stockholders shall constitute a quorum." It is without any punctuation marks. Unless to establish á quorum different to that which the general law makes, this by-law could, have had no object. It cannot be construed as meaning that a " majority " of the stock actually represented at a meeting should be a quorum, for that would be unlawful. A majority, cannot separate itself from the minority, and be a quorum. All present are the quorum. It must therefore mean that it is necessary that a majority of the stock of the-company shall be present in person or by proxy to make a quorum. I must therefore set aside the election of 1896.' That of 1895 has been acquiesced in. I think that the statute contemplates that an application to set aside an election of direet ors must be made with reasonable promptness, and that if, in-' stead, the election is acquiesced in, stockholders so acquiescing Jose the benefit of the statute.
Ordered accordingly.