Plaintiff, a New Jersey corporation, was engaged in the manufacture and sale of valves, fire hydrants and other special equipment for use in water and gas industries. The company employed about 300 persons at its plant in New Jersey. In 1951 the board of directors adopted a resolution appropriating $1,500 as a donation to Princeton University for university maintenance. When this appropriation was questioned by certain stockholders, the company instituted a declaratory judgment action to determine whether the proposed donation was ultra vires. The lower court ruled that the donation was intra vires. On appeal, held, affirmed. The gift was intra vires because it benefited the corporate donor and was authorized by statute. A. P. Smith Mfg. Co. v. Barlow, (N.J. 1953) 98 A. (2d) 581, app. dismissed 346 U.S. 861, 74 S.Ct. 107 (1953).
Judson M. Werbelow S.Ed.,
CORPORATIONS-ULTRA VIRES ACTS-GIFTS TO EDUCATIONAL INSTITUTIONS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol52/iss5/12