KFLCC Kingdom Law 2nd Ed.

CORPORATION

275

CORPORATION

islative regulation and control to a greater extent than corporations not of this char acter. Quasi corporations. Organizations re sembling corporations; municipal societies or similar bodies which, though not true cor porations in all respects, are yet recognized, by statutes or immemorial usage, as persons or aggregate corporations, with precise du ties which may be enforced, and privileges which may be maintained, by suits at law. They may be considered quasi corporations, with limited powers, co-extensive with the duties imposed upon them toy statute or usage, but restrained from a general use of the authority which belongs to those meta physical persons by the common law. Scates v. King, 110 111. 456; Adams v. Wiscasset Bank, 1 Me. 361, 1 Am. Dec. 88; Lawrence County v. Railroad Co., 81 Ky. 227; Barnes v. District of Columbia, 91 U. S. 552, 23 L. Ed. 440. This term is lacking in definiteness and pre cision. It appears to be applied indiscriminate ly (a) to all kinds of municipal corporations, the word "quasi" being introduced because it is said that these are not voluntary organiza tions like private corporations, but created by the legislature for its own purposes and with out reference to the wishes of the people of the territory affected; (b) to all municipal corpora tions except cities and incorporated towns, the latter being considered the only true municipal corporations because they exist and act under charters or statutes of incorporation while counties, school districts, and the like are mere ly created or set off under general laws; (c) to municipal corporations possessing only a low order of corporate existence or the most limited range of corporate powers, such as hundreds in England, and counties, villages, and school dis tricts in America. Quasi public corporation. This term is sometimes applied to corporations which are not strictly public, in the sense of being or ganized for governmental purposes, but whose operations contribute to the comfort, con venience, or welfare of the general public, such as telegraph and telephone companies, gas, water, and electric light companies, and irrigation companies. More commonly and more correctly styled "public-service corpora tions." See Wiemer v. Louisville Water Co. (C. C.) 130 Fed. 251; Cumberland Tel. Co. v. Evansville (C. C.) 127 Fed. 187; McKim v. Odom, 3 Bland (Md.) 419; Campbell v. Wat son, 62 N. J. Eq. 396, 50 Atl. 120. Spiritual corporations. Corporations, the members of which are entirely spiritual persons, and incorporated as such, for the furtherance of religion and perpetuating the rights of the church. Trading corporations. A trading corpo ration is a commercial corporation engaged in buying and selling. The word "trading," is much narrower in scope than "business," as applied to corporations, and though a trading corporation is a business corporation, there are many business corporations which are not trading companies. Dartmouth College v.

Other compound and descriptive terms. —A business corporation is one formed for the purpose of transacting business in the widest sense of that term, including not only trade and commerce, but manufacturing, mining, banking, insurance, transportation, and practically every form of commercial or industrial activity where the purpose of the organization is pecuniary profit; contrasted with religious, charitable, educational, and other like organizations, which are some times grouped in the statutory law of a state under the general designation of "corpora tions not for profit." Winter v. Railroad Co., 30 Fed. Cas. 329; In re Independent Ins. Co., 13 Fed. Cas. 13; McLeod v. College, 69 Neb. 550, 96 N. W. 265. Corporation de facto. One existing un der color of law and in pursuance of an ef fort made in good faith to organize a cor poration under the statute; an association of men claiming to be a legally incorporated company, and exercising the powers and functions of a corporation, but without ac tual lawful authority to do so. Foster v. Hare, 26 Tex. Civ. App. 177, 62 S. W. 541; Attorney General v. Stevens, 1 N. J. Eg.. 378, 22 Am. Dec. 526; Manufacturing Co. v. Scho field, 28 Ind. App. 95, 62 N. E. 106; Cedar Rapids Water Co. v. Cedar Rapids, 118 Iowa, 234, 91 N. W. 1081; Johnson v. Okerstrom, 70 Minn. 303, 73 N. W. 147; Tulare Irrig. Dist v. Shepard, 185 U. S. 1, 22 Sup. Ot. 531, 46 L. Ed. 773; In re Gibbs' Estate, 157 Pa. 59, 27 Atl. 383, 22 L. R. A. 276; Pape v. Bank, 20 Kan. 440, 27 Am. Rep. 183. Joint-stock corporation. This differs from a joint-stock company in being regular ly incorporated, instead of being a mere part nership, but resembles it in having a capital divided into shares of stock. Most business corporations (as distinguished from elee mosynary corporations) are of this character. Moneyed corporations are, properly speaking, those dealing in money or in the business of receiving deposits, loaning mon ey, and exchange; but in a wider sense the term is applied to all business corporations having a money capital and employing it in the conduct of their business. Mutual Ins. Co. v. Erie County, 4 N. Y. 444; Gillet v. Moody, 3 N. Y. 487; Vermont Stat. 1894, § 3674; Hill v. Reed, 16 Barb. (N. Y.) 287; In re California Pac. R. Co., 4 Fed. Cas. 1,060; Hobbs v. National Bank, 101 Fed. 75, 41 O. C. A. 205. Municipal corporations. See that title. Public-service corporations. Those whose operations serve the needs of the gen eral public or conduce to the comfort and convenience of an entire community, such as railroads, gas, water, and electric liggt com panies. The business of such companies is said to be "affected with a public interest," and for that reason they are subject to leg