Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Dou sir1 multr tfuroto aad f tMn8 io r th eo p a l or r0-0trting JOP jority of vhooo rtorrr *hiah , and aorporaticm oak, &Ildin vhlca 8 trwtu undu an tO8 8tOrU 8UbjOOt t0 VI lO th 0OtwO8 Or th 0tV0 OtbtUU48fnglOdi4illt by virtue of a power of attornoy O?fty o ftho 8tOOk Inlooh OW- h8 rOW 8tOIW8 b0 t.OXOa 88 0 xn our opinion IO. o-2764, va held that vhem tb I- @‘OUp Of ~W8Oll8 VhO OOIhtrOlhd th@ ItOr. Oi 8 ~tfMP- 8bip al80, by D8jOrity 8tOOk OVlMrlhiP, OOJltFOlbd th0 8tOP88 v* Mate, aot frt sported. 8ootioo 6 U Artlola lul-d, 1. 1. o., tha awn btoxw Tax Lav,rud8 w folloYrr %o pOV181OU Ot thI8 Aat #h411 be loa8tru.d to q&+4 to OVUM pu8on, agut, ?*oolvu, truotu, tirrr, ~O~pWatfOa~ ~Op~~~8hip W l8#OOia tfOXI, WXhl’Ol&d W Uith ~OtOi@lAO~t0 w8 8OOtlOIlth. OOWt in th. Butt M8l, 8U&lFa, OrId; ‘9.0. 6 VU MIlfiO8tl latondod to protont luge ahaIM of otomr, vhroh reoelve tha boneiltr a omoll MMgeMnt w OoQtrOl 0t.r a n?m- E” Y lndltldlal unftr w 0 oMt1oIla t& olou purpou of thm lu vould bo do “p orted.” Vhik, in UfthU Oi w tV0 fbOt OitWtfOM ~.8Old- ld b7 Lou, 60.8 tho aam Individual o? &roog OS indivldwl8 OWlI tb MjWft htOFO8t iJ& tV0 OO~P~tiOAO, mt &A lreb Of ruoh f4Ot 8:tW r 10118the 8U&@ Individuala br. tha UltiMt. OOIkt?Ol Ud ~OMnt Of rU thr 8tWW inVOlVOd. @I th. Ow hand tvo ladlrldwla ova l 8a Witr Of tb 8tOOk in om oar- porrtlon, 8nd tho aam tvo in a, rldwlo oontrol the rjwltt or 8tOok In the other bJ vl?tw of OVIUP8tiiip of one usd 8a lr- rovoabblr trwt la vhioh the other I8 trwtro vlth lbrolate Honwablr &w&e 1. PhrPWrd, we 3 ovor to WI end OOntPol the 8toOk l8 tmNter. Oa tb8 other Ln d On. Iadltldurl 18 8Ob OVBU Of tV0 8tOr.8 UId OOZItrOl8 tvo othU 8tOr.8 br VirtW Of l 0V.r Of lttO?M Jvlq b lB ruoh lthorltr’. Thue I8 no dlfR ranoo in plaolp flu in lltbu of th88. O&8.8, from the Butt Oa8e. The oontrol r&d mnAgr- 8ont in r&oh 0480, I# jU8t l8 lffOOtiVO, and jWt a8 Un&'&IlVO- oal a8 ii tha oontrol ouo rooou#rh8d by wan8 of ujorlty 8tOOk OVM~8hlp, Urd ~0 think it I8 jWt a8 lff8OtiVO4 OOVOrOd br th8 8tatUt8. It fO11OV8 thAt, in 8rOh Of th. frOt rftUb tionr prorented brpu the 8twrr Ue Wteblr a8 l ring10 ohain and that each Of 7OUr qw8tiOM mU8t be U8V8r.d 10 t& 8ffiPm- at;V8. hti8tUt Ft:bb