McDermont

In this case a motion to strike out portions of the complaint was granted and a demurrer to the complaint *114 sustained, and, the plaintiffs refusing to amend, the defendants had judgment and the plaintiffs appealed.

The plaintiffs in this case are stockholders in the corporation defendant, and they bring this action to enjoin the defendants from disposing of any of the water of such defendant to any one other than bona fide stockholders in said corporation. The defendant corporation is formed for the purpose of supplying water for hydraulic, irrigation and domestic uses to its stockholders, and within the limits of a certain twelve thousand acres of land in Los Angeles county. It is not organized for the purpose of profit or for the purpose of distributing dividends to its stockholders, but solely for the purpose of owning and controlling water in ditches and reservoirs, the sole beneficial use of said water being vested in the stockholders. (McFadden v. Board of Supervisors, 74 Cal. 571 .)

The complaint contains the usual allegations as to the incorporation of defendant, the purpose for which it was formed, et cetera, and then alleges in substance, among other things, that…