ln 1945 appellant corporation was dissolved. Under a state statute, its officers became trustees, with "full power and authority of [the] company over [its] assets and property," with the duty to settle its affairs for the benefit of creditors and shareholders. Under another statute, the corporate existence was, for this limited purpose, extended three years beyond dissolution. Appellant attempted to purchase land under an option contained in an unexpired lease, but was resisted by the appellee-option or. In an action for specific performance of the option contract, relief was denied. On appeal, held, affirmed. Corporate existence was continued only to permit settlement of corporate affairs, and the purchase of additional land would have been either pure speculation or a continuance in business. A dissenting judge urged that an option is an asset; that the trustees may exercise or otherwise dispose of it as they see fit, in the winding up of the affairs of the corporation; and that to prevent such exercise would deprive the corporate creditors of an asset of the corporation. Nardis Sportswear v. Simmons, (Tex. 1948) 213 S.W.(2d) 864.
E. B. Stason, Jr.,
CORPORATIONS-RIGHT OF CORPORATION TO EXERCISE PURCHASE OPTION AFTER DISSOLUTION,
Mich. L. Rev.
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