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• W8831586 abstract "The consent of stockholders is not necessary to the issuance of corporate bonds, according to the text writers and commentators, unless provided by the charter by statute. The present study examines the corporate statutes of fifty-two American jurisdictions, all of which contain provisions prescribing the requirements ior the sale, lease exchange of substantially all the corporate assets, for the sale, lease, exchange, pledge of the assets. Sale even in those states which do not expressly refer to mortgage pledge may be interpreted to include a since the conveys title, and foreclosure and sale may follow default. This was the effect of the decision in Commerce Trust Co. v. Chandler, 284 Fed 737 (D C Mass 1922). Twenty years after that decision, the Massachusetts legislature recognized the ruling by adding the words mortgage, pledge in its statute. Ch 38, L 1943, amending Ch 156 § 42. Also, a federal court has held that the Delaware statute requiring majority vote of shareholders to authorize a sale was applicable to a ; but said that non-compliance made the voidable, not void. In that case there had been subsequent ratification by the shareholders. Greene v. Reconstruction Finance Corp., 24 F Supp 181 Π 938). The appellate court held the purpose of the section was the protection of shareholders, not the corporation its creditors. 100 F 2d 34 (1st Cir 1938). In a number of states, enumerated in section 6 below, there is an express declaration that a sale does not include a that the board alone may authorize a mortgage. In Kansas the language of the statute was sale, lease, exchange, otherwise. In First National Bank v. Paramount Transit Co., 139 Kan 808, 33 Ρ 2d 300 (1934) the court said that or otherwise had the meaning of including a chattel mortgage. It said the words were" @default.
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• W8831586 date "2016-01-01" @default.
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• W8831586 title "STATUTORY REQUIREMENTS FOR AUTHORIZATION OF CORPORATE MORTGAGE" @default.
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