Massachusetts. Union Pacific Ry. v. Credit Mobilier, 135 Mass. 367.

Michigan. Reynick v. Allington & Curtis Mfg. Co., 179 Mich. 630, 146 N. W. 252.

Minnesota. Minnesota Loan & Trust Co. v. Peteler Car Co., 132 Minn. 277, 156 N. W. 255.

New York. Gamble v. Water Co., 123 N. Y. 91, 9 L. R. A. 527, 25 N. E. 201.

Ohio. Peter v. Mfg. Co., 56 O. S. 181, 46 N. E. 894.

Oregon. Jameson v. Coldwell, 23 Or. 144, 31 Pac. 279.

Pennsylvania. Douglass-Whisler Brick Co. v. Simpson, 233 Pa. St. 515, 82 Atl. 759.

Texas. Tenison v. Patton, 95 Tex. 284, 67 S. W. 92.

Washington. North Coast Dry Kiln Co. v. Montecoma Investment Co., 82 Wash. 247, 144 Pac. 58.

7 United States. Richardson v. Green, l33 U. S. 30, 33 L. ed. 516; In re Knox Automobile Co., 229 Fed. 241.

Illinois. Mullanphy Savings Bank v. Schott, 135 111. 655, 25 Am. St. Rep. 401, 26 N. E. 640 [affirming 34 111. App. 500].

Iowa. Rollins v. Shaver Wagon, etc., Co., 80 la. 380, 20 Am. St. Rep. 427, 45 N. W. 1037.

Minnesota. ' Klein v. Funk, 82 Minn. 3, 84 N. W. 460; Minnesota Loan & Trust Co. v. Peteler Car Co., 132 Minn. 277, 156 N. W. 255.

Mississippi. Millsaps v. Chapman, 76 Miss. 942, 71 Am. St. Rep. 547.

Oregon. Patterson v. Smelting Works, 35 Or. 96, 56 Pac. 407.

Pennsylvania. Mechanics' Association, In re Estate of, 202 Pa. St. 589, 52 Atl. 58.

8 Howland v. Corn, 232 Fed. 35, 146

C. C. A. 227; Stetson v. Investment Co., 104 la. 393, 73 N. W. 869.

9 Crymble v. Mulvaney, 21 Colo. 203, 40 Pac. 499; Ashhurst's Appeal, 60 Pa. St. 290; Tenison v. Patton, 95 Tex. 284, 67 S. W. 92.

10Bagley v. Carthage, etc, Co., 165 N. Y. 179, 58 N. E. 895; Watte v. R. R., 48 W. Va. 262, 37 S. E. 700.

11 Smith v. Water Works, 73 Conn. 626, 48 Atl. 754; Blake v. Ray, 110 Ky. 705, 62 S. W. 531.

12 Klein v. Funk, 82 Minn. 3, 84 N. W. 460; New Memphis Gaslight Co. Cases, 105 Tenn. 268 [sub nomine, Raw-lings v. Gaslight Co., 60 S. W. 206].

13Buchler v. Black, 226 Fed. 703, 141 C. C. A. 459; LaVeine v. Tiffany Springs & Land Co. (Mo.), 187 S. W. 1186.

14GIenwood Mfg. Co. v. Syme, 109 Wis. 355, 85 N. W. 432.

15 MeDermott Mining Co. v. McDer-mott, 27 Mont. 143, 69 Pac. 715.

16 United States. Twin-Lick Oil Co. v. Marbury, 91 U. S. 587, 23 L. ed. 328; Wardell v. R. R., 103 U. S. 651, 26 L. ed. 509; to the same effect see Richardson v. Green, 133 U. S. 30, 33 L. ed. 516; McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079; Howland v. Corn, 232 Fed. 35, 146 C. C. A. 227.

Georgia. Oliver v. Oliver, 118 Ga. 362, 45 S. E. 232.

Maine. Vermeule v. Hover, 113 Me. 74, 93 Atl. 37.

Massachusetts. Nye v. Storer, 168 Mass. 53, 46 N. E. 402.

Michigan. Webster v. Ypsilanti Canning Co., 149 Mich. 489, 113 N. W. 7.

Minnesota. Church v. Cementico Co. 75 Minn. 85, 77 N. W. 548; Minnesota Loan & Trust Co. v. Peteler Car Co., 132 Minn. 277, 156 N. W. 255.

South Dakota. Crocker v. Cumberland Mining & Milling Co., 31 S. D. 137, 139 N. W. 783.

Utah. Singer v. Mfg. Co., 17 Utah 143, 70 Am. St. Rep. 773, 53 Pac. 1024.

17 United States. McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079.

California. Graves v. Mining Co., 81 Cal. 303, 22 Pac. 665; Goodell v. Water Co., 138 Cal. 308, 71 Pac. 354; Pacific Vinegar & Pickle Works v. Smith, 145 Cal. 352, 104 Am. St. Rep. 42, 78 Pac. 550.

Illinois. Adams v. Burke, 201 111. 395, 66 N. E. 235 [affirming 102 111. App. 148]; Luthy v. Ream, 270 111. 170, 110 N. E. 373.

Iowa. Dawson v. National Life Ins.

Co., 176 la. 362, L. R. A. 1916E, 878, 157 N. W. 929.

Michigan. Flint, etc., Ry. v. Dewey, 14 Mich. 477; Macklem v. Fales, 130 Mich. 66, 89 N. W.581.

New Jersey. Davis v. Davis Co., 63 N. J. Eq. 572, 52 Atl. 717.

New York. Hoyle v. Ry., 54 N. Y. 314, 13 Am. Rep. 595; General Rubber Co. v. Benedict, 215 N. Y. 18, L. R. A. 1915F, 617, 109 N. E. 96.

Texas. Scott v. Farmers' & Merchants' National Bank, 97 Tex. 31, 104 Am. St. Rep. 835, 75 S. W. 7.

Washington. Parsons v. Refining Co., 25 Wash. 492, 65 Pac. 765.

18 Wardell v. R. R., 103 U. S. 651, 26 L. ed. 509; McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079; Gilman, etc., R. R. v. Kelley, 77 111. 426; Scott v. Bank (Tex.), 75 S. W. 7 [reversing (Tex. Civ. App.), 67 S. W. 343; which affirmed (Tex. Civ. App.), 66 S. W. 485].

19 Miller v. Brown, 1 Neb. Rep. Unofficial 754, 95 N. W. 797; Goodin v. Canal Co., 18 O. S. 169, 98 Am. Dec. 95; Provident Trust Co. v. Geyer, 248 Pa. St. 423, 94 Atl. 77; Sweeney v. Refining Co., 30 W. Va. 443, 8 Am. St. Rep. 88, 4 S. E. 431.

Bill of sale for collateral security, Hill v. Marston, 178 Mass. 285, 59 N. E. 766.

20 McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079.

21 Cole v. Wells 224 Mass. 504, 113 N. E. 189.

poration in which he is interested, such lease may be avoided at the suit of a stockholder of the lessor corporation.22 If the directors represent the corporation in its dealings with themselves in an adverse interest, the transaction may be avoided by the corporation, even if it is fair and the directors have acted in good faith,23 and the right of the corporation to avoid the contract is, of course, still more clear when the directors have acted in bad faith.24 So if the directors or officers conceal their adverse personal interests,25 as where they purchase property and by selling it to the corporation at an advance, receive the difference personally without disclosing to the corporation the actual cost;26 or divide a secret profit with a promoter;27 or where they receive secret commissions on contracts entered into between the corporation and third persons,28 or in any way take secret profits,29 or permit others to take secret profits,30

22 Parsons v. Refining Co., 25 Wash. 492, 65 Pac. 765.

23 Graves v. Mining Co., 81 Cal. 303, 22 Pac. 665; Pearson v. Ry. Corporation, 62 N. H. 537, 13 Am. St. Rep. 590.

Contra, that such contract is voidable only if unfair and oppressive. Lagunas Nitrate Co. v. Lagunas [1899], 2 Ch. 392; Salem Iron Co. v. Iron Mines, 112 Fed. 239, 50 C. C. A. 213; Minnesota Loan & Trust Co. v. Peteler Car Co., 132 Minn. 277, 156 N. W. 255.

The burden of showing that such a contract is fair, is upon those who seek to enforce it. Ross v. Quinnesec Iron Mining Co., 227 Fed. 337, 142 C.

C. A. 33.

24 Macklem v. Fales, 130 Mich. 66, 89 N. W. 581; Hechelman v. Geyer, 248 Pa. St. 430, 94 Atl. 188.

25McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079; Lagarde v. Stone Co., 126 Ala. 496, 28 So. 199; Center Creek, etc., Co. v. Lindsay, 21 Utah 192, 60 Pac. 559.

26Kroegher v. Colonization Co., 119 Fed. 641; Gerry v. Bank, 19 Mont. 191, 47 Pac. 810; Badger Oil & Gas Co. v. Preston (Okla.), 152 Pac. 383; Pittsburg Mining Co. v. Spooner, 74 Wis. 307, 17 Am. St. Rep. 149, 42 N. W. 259; First Avenue Land Co. v. Hilde-brand, 103 Wis. 530, 79 N. W. 753.

So of such a transaction by the manager of a corporation. Badger Oil & Gas Co. v. Preston (Okla.), 152 Pac. 383.

27Brooker v. William H. Thompson Trust Co., 254 Mo. 125, 162 S. W. 187.

28United States. Continental Trust Co. v. Ry., 86 Fed. 929.

Nebraska. Barbar v. Martin, 67 Neb. 445, 93 N. W. 722.

New Jersey. Loudenslager v. Woodbury Heights Land Co., 56 N. J. Eq. 411, 41 Atl. 1115 [affirming 55 N. J. Eq. 78, 35 Atl. 436].

Pennsylvania. Bird, etc., Co. v. Humes, 157 Pa. St. 278, 37 Am. St. Rep. 727, 27 Atl. 750.

Vermont. Rutland Electric Light Co. v. Bates, 68 Vt. 579, 54 Am. St. Rep. 904, 35 Atl. 480.

Wisconsin. Spaulding v. Town Site Co., 106 Wis. 481, 81 N. W. 1064.

29 Patterson v. Woolridge, 170 Ky. 748,186 S. W. 639; Hechelman v. Geyer, 248 Pa. St. 430, 94 Atl. 188; D. M. Stewart Mfg. Co. v. Stewart, 109 Tenn. 288, 70 S. W. 808; Memphis & Arkansas River Packet Co. v. Agnew, 132 Tenn. (5 Thompson) 265 [sub nomine, Memphis & Arkansas City Packet Co. v. Agnew, 177 S. W. 949].

30 Hechelman v. Geyer, 252 Pa. St. 123, 97 Atl. 193; see also Green v. National Advertising & Amusement Co., 137 Minn. 65, L. R. A. 1917E, 784, 162 N. W. 1056.

they are guilty of constructive fraud; especially if they have misrepresented the value of the property and sold it to the corporatiou at an excessive price.31 The act of the management of a corporation in permitting its property to be sold on execution for a nom-inal amount, when they have funds sufficient to pay the judgment, is a fraud upon the rights of the minority stockholders.32

Such transactions, even if voidable for constructive fraud, are not void,33 and may be ratified by proper corporate authority if they act with full knowledge of the facts,34 though action without full knowledge is not binding.35 If the corporation does not complain, the officer can not treat the contract as void.36 Such contracts have been held to be voidable at the election of a minority of the stockholders.37 If the tendency of the contract which is voidable for constructive fraud is to injure the security of the bondholders, it may be set aside on their application.38 Even if the corporation is entitled to rescission, it can not affirm a contract by which it has bought property from a director, and hold him as trustee for the corporation as to profits made by him on such transactions.39

31 Gerry v. Bank, 19 Mont. 191, 47 Pac. 810.

32 Fleming v. Black Warrior Copper Co. Amalgamated, 15 Ariz. 1, 51 L. R. A. (N.S.) 99, 136 Pac. 273.

33 United States. Thomas v. Ry., 109 U. S. 522, 27 L. ed. 1018.

California. Copsey v. Bank, 133 Cal. 659, 85 Am. St. Rep. 238, 06 Pac. 7.

Colorado. Gumaer v. Cripple Creek Tunnel, Transportation & Mining Co., 40 Colo. 1, 122 Am. St. Rep. 1024, 90 Pac. 81.

Massachusetts. Ft. Payne Rolling Mill v. Hill, 174 Mass. 224, 54 N. E. 532.

Michigan. Ten Eyck v. Pontiac, etc., Ry., 74 Mich. 226, 16 Am. St. Rep. 633, 3 L. R. A. 378, 41 N. W. 905.

Hew Jersey. U. S. Steel Corporation v. Hodge, 64 N. J. Eq. 807, 60 L. R. A. 742, 54 Atl. 1 [reversing 64 N. J. Eq. 90, 53 Atl. 601].

South Dakota, Troy Mining Co. v. White, 10 S. D. 475, 42 L. R. A. 549, 74 N. W. 236.

Utah. Singer v. Mfg. Co., 17 Utah 143, 70 Am. St. Rep. 773, 53 Pac. 1024.

34 United States. In re Knox Automobile Co., 229 Fed. 241.

Colorado. Crymble v. Mulvaney, 21 Colo. 203, 40 Pac. 499; Gumaer v. Cripple Creek Tunnel, Transp. & Mining Co., 40 Colo. 1, 122 Am. St. Rep. 1024, 90 Pac. 81.

Massachusetts. Nye v. Storer, 168 Mass. 53, 46 N. E. 402.

New Jersey. U. S. Steel Corporation v. Hodge, 64 N. J. Eq. 807, 60 L. R. A. 742, 54 Atl. 1 [reversing 64 N. J. Eq. 90, 53 Atl. 601].

Wisconsin. Marvin v. Anderson, 111 Wis. 387, 87 N. W. 226.

35Flint, etc., Ry. v. Dewey, 14 Mich. 677.

36 Pungs v. Brake Beam Co., 200 111. 306, 65 N. E. 645 [affirming 102 111. App. 76].

37Graves v. Mining Co., 81 Cal. 303, 22 Pac. 665.

38McGourkey v. Ry., 146 U. S. 536, 36 L. ed. 1079.

39 Burland v. Earle [1902], A. C. 83.