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Corporations Keyed to Klein
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A.P. Smith Mfg. Co. v. Barlow
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Plaintiff corporation, founded in 1896, had a history of donating minor sums of money to various charities and institutions. In 1956 Plaintiff voted to give $1,500 to Princeton University. Plaintiff instituted a declaratory judgment action after Defendant stockholders questioned the proposed gift. Although a state statute allows corporations to contribute to charities, Defendants assert that the corporation’s certificate of incorporation does not allow the gift, and the corporation was incorporated prior to the statute that authorizes the gift-giving.
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