OFFICEOFTHEATTORNEY GENERALOFTEXAS
AUSTIN
GROVERSELLERS
ArrORNEY
GINERAI.
,'
CionorableClaubr X8baU
Yeoretary of stat*
.durtin, TIxa$
Des? Sir, opinion #or O-6944
I
l
8
Your rupurrt for our above quertion
rssdr a8 f0LLmr1
sentloned oor-
s 0rfi00 ~8ing
one 0r rubdiri-
or a& 'kwr iwind CirU statuter, 1925.4
689
‘on iioYambor 6, 19a5, 10 won present.6 with 8
pr0posod SmMdmMt to 2l.mohmtor tagothot -01th8
p r o p er
r uingr o eld u prop08d rupport* 8frid8rit.
The propor amdlaan~ t0 the ohcrtrr ohM+$ed tho w
of the iaorrsso4 it8 orpita
oawporstiOn, rtook Irma
350,000.00 t5 ~75,000.00, M4 qlro propored ta 0-8
itr purpo8b olsur* to mad 88 im ~s$ewicw ia sbot.&%a
34 of &tie18 1302 oi tho Tour imvir4 ClrU Btdtutoa,
1925.
~O~~~R~OJMU phfm-
rtatir aopier of both tho of Fad, ohrrtor of rwh
oorpp*ng#ml the propordi 8m ) of rubh ehsrt8r.
-On IJovembw 10,
1943, 4 rrturaod tao propnd ursnb-
nun* t4a the luah 80
rttoraeyr
for M tNnldtia ia than&
nur~ $tbAtbrn
the ohrtor of
tho Oorpor8tlcw rlterty &tr purp58O 8l*u8*.
"081 EaoteaiBbr
15 1961, ttu ~attorobyr for l~bh oar-
poratioriketurnod iho ropoud ammdmbat oont0adin6
th6t lw MN ls wrsr !a auf LnterpntutiQn of tho rp-
1314 to tho lnnrknt p?opowd
So on01080 herewith in t&i8 oomwotian
photQrt&o aopier or thoM two lottorr 8tor088ia.
*?14880, thmdon, la thr preoifsr, adtin um
"1. shotid th0 ssontsry of strto rii8 thb
instant prQpowd aJuaQunt?*
Tho original par OIO olrum oi 8aLb ehaztor ia Bet out in
your regyort urd oont~ & 8 ths word8 OS ArtlelO 1302, Yubdiririoa
710,Vernon*8 Annotrtrd Girl1 Statutor. The &wrpow olaum ol
the proporrb 8msnbrarnt 0r 8014 ohartw whfeh 0ental.m tho *orb8
.= of Art. 1302, YuBdlt.
2 34, M8d8 88 fOdOW8,
"The purp~81 tOr whioh it i8 rOZ?Wd 18 to tMM-
aot any msntiroturia~ or mill bushier8 rn4 tD
oh880 an& sell goo48, weueb 9
ui msrohsnd t u wed p”or
ruoh bwinO88~ 8s 8uthOrisOd br SUMilt8iOt1 % Of
artiolq 1302 of thb Teur aetlood Cltil BhtuSer,1925.w
Art. 1)y is ia part 88 fO~81
*Any pritotr aorporrtion OripixlzOd Of faoorpemwd
for UlF ~QO80
mMt~onod iA this tiuo JMy ruarrd or
ohrngo its ehrrtar or 8ot oi taeorpontion br filW,
luthountioeed in tha wiie aaaner 88 tha original ohm-
t0r, 8u0h 8midmurrtr or ob8~1808 with the seoont-y oi
stat,. + * * HO urrsnbimt 02 ohango tiolatite OS ths
Hon. Claude IsbOll, ~8~0 3
CORatitUtiO5 Or hkW8 Of this ,tStO Or SW pZ’OVi-
81fNA Of this tit10 Or which $0 Oban&OS the orI~~#l
OurpoSe Or ruoh OOrpQFrtfOa !S to prevent tb luQU-
tilxl thrnor, Sh8U bs or any rorm BP lfr e0ttw
b SkUitir SitU8tiOn W88 iATOlVe6 iI&tho 06ir Of ~Oh58fO~
lt al I. TOWnBOnd, 8oorotarr of 8t8to , 124 9. ul*kl7, whioh had
t0 b0 with SD Od&iSl Sp~~I88tIO5 fO? 8 WfIt Of nuudunu8 fIl44
in the 8opremS Court to oaaprl the 8oorat8rp of SUto to file 8
ohmtar of bearpontioa prepwb& 8nb rubdttod under the aaim
SUbdiliSiOJh Of tho Statute 88 that h8r8 Un&Or WlXi8i(lOMtiOIl,
Snd WhiQh t&O 8bUMtSrr Of 8kk ~fU8.d to f&lb 58 tk. @'OURd
th8t it r)S rOr th8 rOriE#tiOn Qf 8 OOrQQutiO5 rOr tW0 p~rp0#08.
Thr SUprrrPrCQUPt upheld th SOtiW Of the YeOUtSr~ Or Stat8
on that gxoun4l, as wall 88 on thb g~und that It did not oloarlJ
SflOify the ~UPp080 rOr which the WrpontlQa W88 oreatotl. In
SO hQldill&, th0 00-t laid down th. rOuQWiJb$ tiO# Oi 1SW:
*It h t&O OOJItentiO&3
Oi t&O ~lStOr8 ttit tb#
mention Ot both MnUfaotWiA~ Snd JIiAi~46 iXi MO 8th.
dl~i#iOIlOr the StrtUtO SUthOri~@S tho fOM%StiO5 Of
oorpor8tIonr for both purpo#e@ Without anr lisita-
tion, rhloh oOAtentiO5 IS haed UpOA arrtkI5 ax-
pre*8loa* in tho opinion or this oourt in Ramsoy
va Tab& 95 Tax. 62b, 69 9. W. 133, 93 aol st,
ROE. 6'?). 0~ t&o other hand, n8poodent 005tO5dS
that mMtiisotUring @Ed mining We biBtim bUSi-
n0*m*, the trea8aotIon or whioh by 050 o0rp0r8tIon
18 DOt 8uthorimd by tho QXQViSizXkrOtOrmd t0 per-
mitting en lnoorporation for the ano 'or' thr othor.
*tie40 not ruliy SgFOO with rlthor ooatontion.
It a&i86 be romoaberod, 88 W88 &WintId Out in 38mMg
1. Tad, thst Mother protirion mpuinr that tho
ohartar S-t0 'thb ~080’ Or th0 ilMOr~I'8tiOD.
It 18 a180 to b. nOk4 th@t that for whioh u1 in-
oorporbfion $8 SuthOriSOd by Subdivision 14 f8 thb
tran#8stiM Of '8 bU8inO88' - JlOt Of tlW0Or 89;n
bU8iaO8848. sithor ailifns or mUlUf@OtWi f-r br
l b USiM 88 by it@OLi. Tho tW0 -Jr b* WhO 3 di#-
ti.rlotfrQm sna UIUo18tsd to l@Oh other, A ehsrtir
~Ut&Oridll(l both without rO#triOtiOn WQtid OWIt4in
8 S~t~8~t, ILOt Of t&O pUrpOS*, but Or the QUr-
~SoS, rnd would rmpour the 00rporrtlon t0 trum
sot, sot 8 bU8iAO88, but bwinO@rOS. In~&I008 Or
Hon. Claude IabeAl, p&j. b
thiaor0 a bu0im00 0r rinb8 r0r gold ma mothor
or i00Aur00taAg aottan0, 0r 0hhg r0r 0001 ~a or. "
aamZaoturl.ng lhooa. 3~~0rdi~00 or tbr w 0r
8ltsM a tivo la ~& uq la
a lub$lrialon 4, we th ink ’
tam oharrotrr or bha statutory proriaia~~ai* lUO%I
aa to lrolude the oonatruotioa that thr traaaaotion
0r two di0th0t bu0iA000g:or ain* 0na 800Avi00tuing
are bon prorldau rcr. on thr othar hand, them may
ba a bruinoar 0bn,i*tiA& or both ~a0Aaf0etuHAg 0nd
sibLag, ia rhioh tha 0 osatioar an a0 rolate6 to
larh olhar a8 ta mat P tute 8n ontinty, Tb
produotr or the slae say be roU ln their oradb
BtOtO 01 lrq bb UIU&rOOtUrd iat0
l
&O&Q arrWAt
rtiofOa, and them say ba r6ld or aclrotrb tb thdr
r*ribua we** Thla ad&t Joatly bo traatod a8 thlr
tranuotioe. or a MAui8OtUhQ aA ald.Ae buaheaa,
U& 00u rithin the b~@Ugo 02 t&b rbatotb, #e do
not thialtthat the ua4 *Or’ was
~tandad~to pnteat an ror t&t or
any Otherone bualneaa, although it ronaiat partly
of a&Ah& aad partly or llbaAuraaMa&.
I+ c 4
%Vir lftWit~
lO itNOr OrOtiOA i0 lliOo#d by thfr
8ubairlrion ror any un i ertrkin(t that 00~10 with5.n
the aeurhq or all or lithar or thoao worda. St
6008 not rollor that lrwral und@rtokinga nhiohin
thafr naturea ar;ouy~~d bfatfaet
a&ayba in-
oh&b as on., ‘a bualnrar’ may
prepr3.y be inoor&ato6 i
aanuiaoturln& an6
88
miniA bUOi~Or0, but tW0 b~OinO@Ud, OAO Or MUM-
rarturiry aad tk0 othor 0r dying, cunaot w ~40
Ona beeOWe tha #tOtUt. dO4b Aot 00 $4Vid~. nLi
l.~~alatir. intention that the bualaaaa rhould be
a ualt ia rurthw ahown bl the foot bhat in aub-
tiriaioa 4 thora 18 80 (Moral OuthOrit~ for the
-Maa and wle of -da, but odq an lutheri
rot th p~rrakb80 ana 00h br th000 *-a ror au x
burla..&
*A abarkr
5wt lpdry the purpose r0r *h&0&
the oorpontloa ir to be mlzI1. Tide rkoU6 be
dew rlth aurriolrnt oloarcpraa to Onable the
soeratary or stat0
to WI that the purpoa4 spool-
rid la OPI
pretl&oi for br the astute, an6 to
do r lno r ith lOM rortalaty tha laopa 0r ul* burla.
or urrdartau to @a parmu&. TM r&rtor toadend
in this oaoa lo DO gmral and lndeiialte in it8
.
692
tfoa. Claude IaboJ.l, pa&a 5
1urg~Og0 that whils it Lnigat apply to oue buainaaq,-
luab 08 w haro nwntloned, oonaiatiiq or both manpI
raoturing and ml.nia&, with tho a nQ m&q'or
p ur o h a a l
6.ooda; lto .,ua*d r0r lt, it nrlght 0100 bo to in to
luthoriaa the trrna8otion of two buaiaeaaea, ZL or
nrouraoturl.njt an& anothor 0r ID&I*, aith thg rurther
pcnnr 02 purikJi4aa aad 0010 iaoilont to laoh. And It
lppaarr to ba the par 00 0r tha xvlatora to uoa tb
uEartrr ior the oarsy G 05 or what w rrgara 00 two
diat~ot buabaa~oa. we MY look to thla aa ILluo-
mw0’0r uo oqpoiti40 r0r use or that whi0h it
is mw$ 80 ham the roapoadont ril0, although *O
do OOtthink
that quoatlona 18 to u&t my be dona
under a oharter ordinarily aria0 whmt 19 ir propond
WI hOlO OA0 iiibd. Xt ia jwepor and irportaat to aeo
that purpon or a ohartrr f0 80 lxppnasoa aa to
the
oarry out thm latantiau et tha La&alatuxu ta making
that ngulmaeat; ror it la by l o o a p lla a crich
o it
that the publlo, 80 wall 68 thoao a~~ia1ly fstwe8kd
~~n&er$rationa, an to bo prOt6otd a~aLnatthe laawp
ra aot greuitod. It apparr rroa &ho potl-
tlou r tho relator0rho or0 also the propoaod dm-
tha
poratorahav* hwatofon lo to 6 00 pertn*rr ia siining
ror oif gas and water, and have mnufaotumd their
tnua tee io and quipMAt and Qoria*a wed i& that
buainoaa, and how bmo~tod urd rooeirrd patent8 OA
lMO rbioh w8ru am. Trmg horo b o o n
lblo to maau-
raoturs mra of thoao than they ham neodeb ia dbln((
their oya uork, and Herr bson mgr$Od in ral.Liagthem,
aad tho aOncsrOOtUd.ngbualaoaa whisk thy wish to in-
oorporak Ia that of sokingthaw to&a, Qorleoa, ate.,
ror nlo to othara. Suoh manuraoturing haa horatororo
beoa a part or the bualnrao rhloh, aa ln6~ridu818, ther
had a right to oonduot, but it by no amona fQAAOW0 that
it with all 0100 that 10 proj70006ror the oorpontlon ia
o nly 01 1b w
0ia a a a 0r O& A* 0nQ a nnur 6o tur ir l
quoh a0
ona oorpontlarr nnr rollor. Xt amaa plain thrt tha
buainoaa or aanuraoturiag tor bale tool@, lto., ior
rnlslng Ia aa diatlnot rron tao bua~raa et 5inl.q aa
tha buainaaa 0r mnufaeturlng ror ulr iOrOkhA6 &q&e-
mata would ba iror ramwig. In order to hold that
the lt4tuto allmf* Uxa inoor rat&au for tw awh
pugpoama, uo should hava to go
old thot it luthorllraa
tb iaoorpmatloa or ma oonpany ror diatlnot buai-
noaooaor oranuf*oturisq end minti, RhiOh, a0 *o Envm
already raid, la not true. And, a0 the ohUtor
offor aaa bo intarpreted a0 aeaniry ad la l.RtOndOd
HOA. Cla~~&aIabbll, gta~.r
6
to thr yurault of both
man that it authorlaaa
buainraara m think tha respondent &ad tha right .’
uador t&r tow to roruar to rii0 it until thr bwbt
lhould be roymod by a more apoepo
am to it8 a o o Q8
ltatomat 0r the purpoao.* #f’
xi -ah 0r th8 growhknt rOrth in tho above oplnlonror
rduriiu to rllo aaid ohmtar #PI lurriolont uaddr thr root8
oi that oaeo w&ore M ori
bo at2sriairnthare, lapoof al4
Foal whartar
M MM&O~ @hOrtW la hero inrolrod. The orl&aal
moo intolvad, they would
tho rirat ground thmroot, *in00
ohrtar or
tho Brov~rrllLa Shi Buil6ifq Corporation hating authorlsod a
bualmar ruoh aa b UL din&, oonatruot~ and m irlag beat8
lhlpo aa4 VaaHla, tegathor with the other rot r rltlo8 thanin
doaorlbed,.ama rotid noroaaarlly oonotituto the uanuiaoturlaf$
bualmoaa that ueuld br Oarrlod on under the aaondrd ohartor,
aad aald amaufaoturod 8rtiolrr 0fka ukrlala, dooka Ma lp
purtoa~oeo uwd in oQAAootloA thamlth would bo tha gooda,
warm d aarohandl~ to bo puokoood aad aoldoadsr the
asended o hartar. But uo an uaablo to ose rhrro auohioo~u-
faaturln& bwboO8 M4 tha puroha&e and ml0 Or OWh yroduota,
oouBd ba 00 roladto a ainla& bualmaa~tltho pwObr0~ and
aalm 0r it8 produotr 0, to ooaotltuto 8n OAtirdy wader tao
ruler of lar laid darn la the aboroWM. yw Ohioroaaon#
therrron, it is ouropiaioathatpour gluatian ahduak,
On6 It lr, anmorad In the aogatira, le wall lloo ior the
furttw ream that the purpoao ah180 of lwh urn&d
oaarter doa0 not olaarly 8pOOlry the pwpsar Or thr oorpora-
ti0n artor tba rikiiu 0r a4314afaondPtl)nt.
Your0vsry truIyr