oFFICE OF THE ATI-ORNEY GENERAL OF TEXAS
AUSTIN
Honorable Ifillim J. tr8on
seoretary 0% strte ,.‘
.1
,Aurtln, T6xar
Dew sir1 OpiAlon 80. o4qe '\, "
Her TwmewUnio&Su;rply caapfmy
ny Aott7ml&o purpora elAu6s
under ttota ptimt)ts&
<-
Your request for aa,n~ia&m of this de&&t&
rstde t
Lam of Text9 nLtl!ip purpOw clause sottlng
0nlrm].maluhea-
tr under 3ac-
*
in& the purpose clause end adopt-lag the pm-
~islons of 3eotion 40 of arttale 1302. Thin
Dspartaant returned the aaendas~t with the
adrioe that the purpose olaune could AOt be 60
radlcallp atiqged; t&at such ohange wee not
.,^r ^.,..,,.,,-.Y.^.,.CI ^ ~r-^..___..__.__^__,_____. -.
Emmrable 3illlaa J. Laweon, Tage 2
aut&orlzed by iirtiola 1314. Em zmelu?zeAt P.es
b4eA raturlred to ua again by 'theattorneys of
the &bOVa OPptioAed OOrpOratiOn iASiEtifig that
if they hid n right to u~ecd the charttir lo
the lirst ~luce and eUopt the !&rkratf~ ;hsso-
clntioa lsr aa 3rsoorlbed In .atiols 578G, then
thy had a ,-i&t fo ra-amend end rs-&do;t a
purpose olause sobst&atlally a8 outllaed in
the oz%ginal oorporatlolt.
"'we raqwrt
that you advise LUJa5 to %iirtZher
or IlGt Artielm
1314 Gf the statutes, or any
/other ~rouloio~s would autbortas the 3;eoraturp
‘of Stas to file &sd w;provo the uaendmnt re-
tsrred to above.*
You sta&thtt ths oorporaticm involved la your
inquiry orl&mUy tdofled es its yurpoaa &ubdlViAioA 39 of
Mtlold ~Xll3, Vsmon~s.A~~~tAted Civil Statutes, mading:
"39. ?O FU?'ChsM and 845x1 gods, wtIeS
andaerckmdls*, and ri@eultuml and remi
glWdUOb6."
Gash oorporrtlon thenafter Availed ltualf~of the
provisiona of anb &dvAAtAgos olf'ordod by the hlurketi~Mao- *
ofttfon ;rat, bshg chapter 6 or Tit14 m 0r V~rmrPs bono-
tated Civil Btatutes. Suoh adopt&on was by virtue o? Arti-
cle 8960 thamof readfzg in i;art:
lA’~ny
QOl'pOTAtfOA OP JEUOOO@iGA 02.&AnitAd'
under prsviotielg existing iztatats8, say by a
EiajOSfty vOt8 Cf 1% O~CkhG]ldS~ Or mur~bOrS
ba kXpu+$htunder the provftionr OS %hia hip-
tnr by liaitlng its seuberebip aAd adopting
t&m o%he?r restrictions r15 previded herein. It
abhll make out In duplloate L\ststeaant z&sod
and sworA to by its dirrators, ui‘on ;cOrrnS
supplle4 by t&e 3ooratary ol Stats, to t&e
ditot thet the oorpmatlos or AaeociatioA
haa by D maJorlty Vuta O!' it6 atockhholders 0;
%-born @eeided to sooept the,beuol!fts aAd be
bound by ibe ~roViSiOA8 Of thi.A Ohapter. . . ."
Artor haa ea0’;rteathe tart40 ana p~i~irt~n0 er
chapter 0, sup,s3, the4 oorporetion na naeks to sp3%aaits
ohorter so 68 to have ce its gurpoee olaurre Subdivision 40
0r Artiale 1308, supsa, read.ing:
"40. To buy and sell mods, were@ and
nsrobandlsa of any doaorlption,
by rholeeale
or vrholesele ma retail., wfth a eapltal
@took of not 16~ than twenty thowald dol-
lars; provided, suob whqle8ale and retell
business ehall not be coaduoted apart or in
sgpuxeta sstablisbmnts.”
Artlole X314, Barnad Annotated Clvfl Ytetutas,
pxodaas that sky privets oorporation orouted by t:rtclr) or
Title 2% ztuy s;iwd it8 obrtor, but such rldht is lititsd
by the last sentanco Utereot readiagt
90entsnditwntJr obaryre vlolstlva Jf tae
CoCBtltUtlm or Laws or this 3tata or soy
provlslon Of this title cc whicC a0 ohangso
the sri&al glryom ot auah corgocatloa as
to jirdr413tthe axsoutlon titwaoOf, shall bo
OS any forae OS orfect.~
Artlcla 5’?4E of the Uarxotlag 60% wovidasr
"'She&tii?lee of &wotporatSon IBUT be
aXtcered or atitffcdeacct say rcgulcf mwting
or at any spocI111 saetfng called ?or that
ptUp0*th &JInaendment alust fit& be aF;pror-
06 by tWO-tbid6 Of the diXoOtOS6654 th4Zl
adopted by a tots representirii;a m:oclty
or all the avambersor the aiaccintLcn. hmord-
3wt6 to the Articles OS locor~oratloa yhec
etaedopted ehalX be iihd In socordawc with
the provfslon$ of the ;,~nnral aorporaticn hw
DS thJs 6tate.'
Xrtlolo 5740 of the :&rice tlag Aat grovldset
*hn aeeociation ~911~be organized to an-
gege Ir! any nctlrlty In oomteotlon with the
~r!cetlag or p.6111~ of the aqrlmltural pro-
ducts of its 3mbers, or with the bwreetin&
pres6xv”sing, drykig, ~marslsin.8, canning, paor-
itig, stm.ug, 2attnBllng,ahiwinq, of Utillza-
tlon Ch4mOt, or the maufacturing or satietiw
oi the by-ptoauot+ thereof: or in oonneation
with the aanufeaturlng, millim or rupglyiing
to It8 amber8 of meckln8ry, scp.tlpment or
suppllss; or in the financing, 31 the nbova
aumaratfxl aatfvitlw~ Or in any one or aOre
of t~heactivltf~ epsslfisd harein. zrovia- 1
ed, however, a ny lwh aotlvtty say extend to
non-m&em nnb their product8 &&tad by
Article 3X%3 4.8 heretofore bPiazided.*
Xmn the Parrman Union Supply Cbapanp adoptad the
;~ro~fsloeo at thr Llrrketbg ~0%. ft edopted, althor intan-
tlaaally or ~~IntentionaUy, the abovo
quoted Artiols\S740
am it8 grUpO8a OlbU8e, tk wlaqtitiinoi) all thR ?ight8 anO
prlvil*4388 afforded by the Aot aa well'ee beooming bound by
UP 1Lzltationa.
T:e held 9 our opinion Eo. iX%9, rho origiral
of mhlah :zm have In your fibs, Chat 1 coqoratlon could
at ChAA&3it8 ~UrgWe fro18 d&tiVittfOA 06 to Cubdirleioa
67 ot Amicla 130% &uoh hokiLn& llea ;;rwXlcoted upon the
gropo8ttion t&t the pr3sowd okmxys would be a tunciamusM
bAd r;rrterial Cl;aA,~@iA the OuX'>Ol'at8 &Al.-&Ye &ad ‘1818 8UOh
3 ohbnge a8 to graveAt th3 u8outloA of the orlglnal pur-
p080*
18 there a flulaaaantal md satrrial akaagr in tho
in8tant ears, where 18 f8 mu&t to ohaqe the ,ptwp08a tram
/that authorlaod by Arsiole u740 to Elmt~6ont~lnad iA ztub-
dlvlslon Co or' Artiala 13&S, sow!a? llould tbr propo88d
aseahant 80 ahsnge’the :pi@ent ;xirpo83 oi: the CorgArbtioA
a8 to prweat the wxeoutlon thereofl Wo balleve it umaa-
888Uy t0 QMlyZ% the83 tV0 brti@la6 123b CR8Ub1%%hdi.ne
thereof will turtisb nnrple aftlmetive evi3aaoe that to adopt
the latter artiale as a psip~~ecblaune ~111 rwulsr the cor-
polntioa zans.bl8 to ~‘srfoa FWJr 9r tks iunctti5lla Gzd to exe+
CA83 orme ol' Thr) rifts 3ti ;>riy:le,~8 AoWlnjopsd iae 41
6s ventlnGfif with Cdttin rL&*w *rid prirtlsf538 wMoh it
dOea zivt now sofoy.
It is our oplnlon that you am without aut2x0,tft.y
to ailprove tha pv7oaed aaoU&IeAt.
TOUTS VilY tnrlf