I
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Tou requoat Ml* op lpartmant on tba
quertion e~tained in pur 1 , quoted below,
aa fOllow~(
e proper bash
wiu Lon8 Leaf
lLo h lr ta
o xr ep o r t,
to show thet it ua~
011.I)#ooatempl~t.84
nstlon 0r the oorpor~tlon~e traaohbe
t& Xi&t bi80108e# that it h & d in lXOeIa Of $&~.oo
in l eooant8 wablo la at the olose of btmlnoar imaombar 5
194t and #tN!,714.4t shown aa *To ‘?tookholdor8 Upon ?inU
49&.tfoa~~ .”
l.
l.
:!f;
"It la our opinion tha ttm debte cf (L oorporatlon
entSrlli U atate Or 1iqUidatiOn IBUd firat be paid and
any illstrlbutlanmade to the etookholdors first oher+.yd
a&n8t SUIF&‘IlUS balM808, Nld apply the rmainlng
diVidOnd8 a&Eat the ~Ut8tMMtill~mpitd 8tOOk. If thi8
pToo*dure bad boon followed, approximately .?365,000.00
in outatandinr,capital 8tiOk would i!avebeen available
for oocalderatlon in ooaputing the amount of franohlae
tax paysblo.
"In vie+ Of WS 8bOTe f#IOt8,8hOuld t\-18d~~tment
acoopt tileminimus payment 0r #20.00 la full 8ati8raotlon
of the sorporation*a franohlac tax or ohodd ua oonpute
the tax upan $36t,914.49 ohom a8 due lTa Btookholdora
upon Flaal Llquldatloa*9a
Uo -1 8180 oonai6u in this oonnoetion tbe letter
ot Iionorable J. L. Lookott, dated July 26, aa follow8,
Vti oaaulon for thi8 letter io a letter Jwt re-
oelreb rrom ths offlar of the seorduy of State dated
JUly 24, 1042, OOpf Or uhloh i8 &ttWh~b hereto.
“In oonnestIon with ym,r oor:d4aratioa of the quaa-
tiOU 8UbMittOa tG JOU by the SeOTewr Of d&O WO UOuld
like to h** ywl take Into oau8Id*r8tIon the r0Li~
faota, afflbvit or other verlflo~tion of ubloh will br
fUd8h46 t0 YOU If 80 d4~84~84dr
~Ltqu;datioa aC Wlu Long Loaf Lombor Oompuy had
bea3 uodor 0008ldorutA0n, tie ia h*t qroed upan amme
the stookholdaa, for rorrtb8 prior to the and of the
year 1948. At l me+tIly of the dookhol4ora he14 oa
or about Uovembu 14, 1942, llquld~$lon wu a@ead upon
but formal a&Ion tharaon Ua8 not Won beowaee the
roqolrwY prior notloe of the me&lag fad aot boon gltan,
eo tbst lmmmdldoly aftor djournnent or that mutln6
propor notloo ~88 i8aUed far a mw&In(r on %oember 1.0,
1942 nt whioh all of the otook outetaadi~ w&a rot.&
for iiqul6nitioa and eir~olotion 0r the oorporatlon to
ba 8irc0td rorthwith. Tbueafter, and prior to Dooam-
bar St, 1942, tha corporation lstually @old and deliitorti
itn mill, wh10:x hd been ~eTiOU84 8hut down: it8 lo&W
. ,
,
operations had bssn prorlou6ly dlsaontlnued. The
entire llquldatin~ aI8trlbutlon of ~1.030.000 In
or8h was paid out after rdoptlon of t&e rkolutlon
for liquidation and diuolutlon at:dafter male of the
mill, ate. Aa tiriddt illaorpll8nea with ReTieed
Statute 7097 8howI?rgthe oorporatlm wa8 In lotual
dl&eolution was filed with the frmohl8e tax report. ”
From flu Information before un, there is no
quaatlon but tht the d&r Lo Luf Lumber Conpany 18 In
the prooe8s of bona lid. llqul3 atIon, wlthln the purview
of Art.lol*7097, v. R, c. 8. ThI8 bsla(!true, the sole
quutlon for our a0t0wnhi0n 18, what 8m0unt or frM8hi8e
tu, ii any under the hw, d008 t5e wla Lanp, LOat Lumber
Coqany ow under Artlola 7091, V. F..C. 3.. reading a8
iollowst
@Tf a oorporatlon I8 aotually in pro0088 0r
llquldation, suo!3oorporation 8hall only be roqufred
t0 pxy 8 fmOhi80 tax oalsulated tmon the di.ffmenOe
t0m rrPOUn3 Of Oapiki 8tOOk i88Ud ad 88 to iha
aiwunt of 1lqulid~tIa dida d lotully paid an4 that
8UOh OOr~OZY~tiOtl 18 &. (D aOtrdJ. bon8 iid0 8t8t4J Of
llqulaatlon." ( 3q lh ul
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a a o d)
?IadO0m it helpful in UI lffmt to ~IVO at 8
OOrreOt M8w8r to thi8 Untitled Texas Attorney General Opinion
Combined Opinion