The authorities concur in establishing the position, that when a corporation sues for a debt, its existence must be proved on the general issue; and the question arising here is, whether the evi*535dence offered was sufficient for that purpose. The act of incorporation and the declaration of the commissioners that the necessary sum had been subscribed, and the subsequent proceedings of electing a president and directors, gave existence to the corporation; and although the commissioners should have been mistaken in their report as to the amount of the sum subscribed, yet having been entrusted by the legislature with the power of deciding on that fact, their acts can only be examined in a proceeding directly against the corporation to inquire into the validity of the charter. It might be sufficient for the purposes of the case to set aside the nonsuit on account of the rejection of this evidence; but as other topics have been discussed, upon which it may he desirable to the parties to have the opinion of the Court, as the means of preventing expense and litigation, I shall proceed to notice them.
It is said that no action or warrant can be brought ior^ the payments declared by the company, because the law of 1812 has provided for striking off the names of the delinquent subscribers and the sale of their shares. But the terms of this act leaves -it discretionary with the company whether they will do it or not. It is merely á cumulative remedy given by the act to facilitate the operations of the company; for it might happen that the shares should become wholly unsaleable and unproductive when the exigencies of the company demanded ail immediate supply of funds, which yet might la raised by suing the stockholders on the original contract. A similar provision has been inserted in the cbartera of other incorporated companies; and the general course of judicial exposition is, that it gave the company an election either to sue, or exact the forfeiture prescribed by the statute.
The only other question I shall notice is, whether it is competent for the defendant to deny the existence of the corporation; and considering the contract made by him, promising to pay for the shares to the use of the *536persons who might thereafter be appointed president, direc^ors ai,d company, his presence at the meeting when the commissioners made their report, his assent thereto, an¿ afterwards voting for the president and directors; these are acts which, taken in connexion with each other, do, in my opinion, estop him from disputing the regularity of the inceptive steps tending to the formation of the company. By entering into a contract with the plaintiffs in their corporate name, he thereby admits them to be duly constituted a body politic and corporate under such name; a rule which appears to be recognized in 2 Ld. Ray. 1532. and one certainly consistent with j ustice and the analogies of the law. I think there ought to be a new trial.
To the act of 1818, oh. 9T9. the Tar m Navigation Company owes its existence. That act Mjpve it its incipient form, and enabled it, by a transfer to it of certain powers, to become a corporation. It declares, among other things, “that if it shall appear to the commissioners upon the return of the books that the sum of g 30,000 has been subscribed, the said subscribers, their heirs and assigns, from the time of their first meeting, shall be, and they are hereby declared to be, incorporated into a company, &c. and as such shall sue and be sued, and are empowered to elect a president and di- • rectors.” The case further states, that at a regular meeting of the commissioners they reported that g 56,000 were subscribed. That suck report was received by the stockholders (one of whom the defendant was,) and by them approved; that they proceeded to elect and did elect a president and directors. The company being thus established in the manner pointed out by the act, the defendant ought not to be permitted to dispute its existence; and the less so as he in part, by his vote, had confirmed it. If the commissioners improperly exercised the powers conferred upon them by the act, they cannot.be called to an account by the defendant in the present action; some *537other remedy must he resorted to. I, therefore, think that the company is authorized to sue; and, as the judgment of nonsuit was pronounced under a different impression, that a new trial should he granted.
I do not go the whole length of the plaintiff’s counsel in saying, that persons in possession of corporate rights or franchises shall be considered as rightfully corporators against all persons but the sovereign; but agree with them with this qualification, that where it is shown that such corporation may by law exist, that is, where it is shown that a charter has been granted, those in possession and actually in the exercise of those corporate rights, shall be considered as rightfully there, against wTrong-doers, and all those who have treated or acted with them in their corporate character; and even where it is shown that such charter lif® been granted upon a precedent condition, and persons are found in the quiet possession and exercise of those corporate rights, as against all hut the sovereign the precedent condition shall he taken as performed. And much, more will I consider the condition rightfully performed, where it is by the charter left to others to declare the fact of performance, and such persons make such declaration. j.The, sovereign alone has the right to complain, lor if it is an usurpation it is upon the rights of the sovereign, and his acquiescence is evidence that all things have been rightfully perform ed7~^t think, therefore, that the presiding judge erred in holding the plaintiff to strict proof of the performance of the condition, and more so by not considering the declarations of the commissioners as evidence of that fact. Let the rule for a new trial he made absolute.
So, per toiam curiam, Judgment reversed.
[Vide Turner and another v. Baines, (2 H, Bl- 559.) in which it was held, that church-wardens de facto might maintain an action against former church-wardens, for money received by them for the use of the *538parish, though the validity of the election of the plaintiffs to the office -mas doubtful, and though they were not the immediate successors of the defendant. The Court held, that as against the defendant, it was sufficient that the plaintiffs had been “ admitted, and sworn into the office, and acted as church-wardens.” As this seems to be a direct authmity on one part of the foregoing case, and was not adverted to in the argument or the opinions or the Judges, fh - Reporter takes the liberty of adding it to the case by way of note.]