People ex rel. Port Huron & Gratiot Railway Co. v. Judge of St. Clair Circuit

Michigan Supreme Court
People ex rel. Port Huron & Gratiot Railway Co. v. Judge of St. Clair Circuit, 31 Mich. 456 (Mich. 1875)
1875 Mich. LEXIS 99

People ex rel. Port Huron & Gratiot Railway Co. v. Judge of St. Clair Circuit

Opinion of the Court

Per Curiam.

The directors or other board of management of a corporation having general authority to manage its concerns, are vested by law with the only discretionary power that can exist in any one to carry on the corporate business; and such management cannot be assumed by a court of chancery, or vested in a receiver; neither can it be taken from the board, except under proceedings instituted to wind up the corporation under the statutes. — Comp. L., 1871, ch. 206 and 207.

The appointment, ex parte, of a receiver to manage the corporate business, and the granting of an injunction in like manner on an interlocutory ex parte application, whereby the control of the business is taken from the directors, are more than irregular, and are absolutely void, as entirely beyond the power of the court; and are such an abuse as may be required to be corrected by mandamus.

The nullity of such attempts to divest rights by interlocutory and ex parte orders was somewhat considered in People v. Simonson, 10 Mich., 335, and Salling v. Johnson, 25 Mich., 489. — See also Barry v. Briggs, 22 Mich., 201.

Writ granted.

Reference

Full Case Name
The People on the relation of the Port Huron & Gratiot Railway Company and others v. The Judge of St. Clair Circuit
Cited By
26 cases
Status
Published