A corporation is formed for the purpose of manufacturing, buying, selling, and dealing in drugs, chemicals, and similar products. The corporation, under authority of its board of directors, contracted to purchase the land and building it occupied as a factory and store.
Collins, a shareholder, sues in equity to restrain the corporation from completing the contract, claiming that as the certificate of incorporation contained no provision authorizing the corporation to purchase real estate, the contract was ultra vires. Can Collins prevent the contract from being executed?