Untitled Texas Attorney General Opinion

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