‘:
.,, OFFICE OF THE ATT’ORNEY GENERAL OF TEXAS
4.. AUSTIN
somrable Ueorge H. Fhagsmrd
8tete ComptrollerOS Publio Aaoounta
AUdibl, %WSS
We hsvo raaelved
en opinhm fr01~this deptm
or not it ie neooarmv to p
upon the 90% of authorlaed
mm-par talus atook of 8 T
c 388S1on, 4nsotod
lo 15, of XouBe will
Xo. 6.
6 departmnt hold;
quoted language to
0 tax 6n ori&aal
r t&4, ooa?poretion’8
rubrorlptloaem-
olueion aa to the non-taxsbiXftyof
6 stook do08 aot 4xtcnG to end em-
onoe outetondlngfn the hands of t&e publio and
hae been purohased by tbe oorporatfoafor reaolc.
~uoh stook la not original iam atook end $8
taxable.
*. . . .*
?!bolptcr the}hQb~d Civil .FYsttUtes
19A ::!: of Tarea,
1925; bafnp,'rtfclee2:‘38ato 169@m, inelusive, ia the Texea
MAW dut!l!q~tith non-per oorporetione. ,L.rticle
153&k, RU'JTL),
proridso:
*Upon the organization,undrr the law8 of
thie 3.ate, of an private oorporkition rm pro-
tit, . . . praricxon my be atedefor the iseu-
anon of oheros of its staok without nor~nal or
per value. Every auoh shsra &ml1 bs uqual in
elf.respcotc to avery other suoh sham, ccroept
that the charter or 4ny 4aondment thoreor may
proriCe that suoh nharcr d10u1d be airride iato
Different ola884a, tha sharoa of seoh elan4 to
ham preferonoos,dr%lgaatione,rtcphtr,' privf-
legoa md powers e.ndbe subject to nuoir:~~rastrio-
tlons, llmltatimu3 and ~u4llficntionsem shell
ba rtated lo thr ohnrter or aAy emsndrmnt ther4oi.
any 14w of thla 3iet4 ropulring thee the p4r +eluo
ot shares a? stook of a oorporabion be atetea in
any oert.ifLoabe, report, or other inntrumont or
paper shall be oozapliadwith bl rtatiw, in ro-
spaat to shar44 tdthout nominal or per'valuo,
that auoh stoob ie without par velus, and wherever
the mouAt of atoelcis required to be stated, th4
number or mob 8har48 without nor4k41 or per vslue
chal.1Se stated an4 that ouoh rhanea exe sZthout
no&Aal or par v491ue."
Artiale 1518b, aupra, pmvld48t
Tubry oartl~loate i6sued for share8 or amok
without notinel or par relue ahall hew plelnlg
stet%d on fta feoe the n&xber ot sharer;nhioh it
rrpr4eents snb the elfteathsrlrof,e4Af-l
ahall Act
set forth eny par ~a&&4 or Valus in 60llara of
suoh ehesa4. i!osuch"oartiiio%te4hall oxgmss
or atote thGI=aQCI
eny rats 09 tividend, ~lWf%NlnOe
a4 Lo assets in liqUi&atitiAhCL*prio% at *ioh
such s3arbs may be retloemedsroept SC dollase eAd
osnoz par ahere."
$oporsble*Georgeii.?hoppara,Pa80 3
ArtIole 15380, eupra, prorlaesr
Vorporetlone mey isrue and diepoae of their
+uthorized shares having no nomIne or per rolue
for auah aoneibrrrtionee nmy be prtisoribd In the
orI&nel charter or any amendment thereof; or, Ir
no Oonei%erotionis 80 pre8orllm%,then for euah
conaIaeretIona8 my be rua by the atookhold0ra
at o meting %uly oalled and hold for that purpose,
or by the boml of dlreotore when aoting under
(yenoralor SpeoIal authority grunted by the etoak-
holders( or by the board of direatom when lotlng
under general authority oonferreQ by the original
eherter or tmr amendmmatrthereof; swh ooneldera-
tlon to be In the iorm of monay paid, labor done
or property eotually reeeired. J&y and all sharer,
without nominal or par velue imu ror the ooni
siderationpreaorlbed or rlud Ln aooordanoenlth
the prorleiona of thie seotion rhall.be fully pa&l
etoek end not liable to ray rurther aall or aeeece-
zent thereon, nor shall the aub&orlberor holder
be lleble for ouy iurther paymenta.*
Artlole 15384, aupra, protiaesr
*a o r p o r letio na the lwuawe of
uthborbisg
rherea of its (their) stook wlahout napliuelor
par value shall furnish to, end file with, the
Feoretary of Sata nt the tine of filing the ahar-
tar or emendxwnt to a oherter authorixlngthe In-
auence or such stook a oertlfioste authentloated
by the bwx-porPtora Ocito oriafnal ahmter, end
by 8 majority or the dlreotors aa to any amend-
ment thereof, in the mennor required by the lrvm
of thie ?tate as to an original oharter of In-
oorporatlan,oetting forth the ioltcnring:
*(e) The nureberor ahares with a per or
taoe value an% the number of shame wIthout nom-
InoX or per value that my be feeueb by the cor-
porstion en% the 4lasee8, If any, lnto whioh euoh
shares 6re dirfded.
',
. . .
gonoreblo UeorRe N. Page 4
Che:)pard,
"id) The number of aheres without nomIual,
or par value subeorlbed and the actual oonaitlem-
tion reoelrad by the oorporatlonfor such ahareai
an6 upon raoelrin,?such oertifioateIt shall be
the duty of the f3oretary of :taha, on payment or
orrloe reaiiand franehlae tax duo, to rile and ca-
oora the oherter, or amenbmnt thanof, of auah
oorporetlonan0 to give hfa omrtlrIoateahowinG
the reoora theraor, provided, howevar, the #took-
holder8 or any oorporatloncruthor'trind:the Imu-
81148 0r shares or its atook wIthout norain or
par value shall be requirea, In good faith, to
aubacrlbs an% per for at leant ten per oeat of
the authorized share@ to ba laaud without nom&
nal or par value kr0r8 6al% corporationshall
be oharterad or hare its eharter ~andad 80 aa
to authorlee the iaauaaae o? aharea without par
or noszlnarralue$ protldad further that In no
event the amount ao paid shall b8 lma than
$25,000.00.*
Row the raoba @en in your request, we pther
that there ia no doubt but that our opinion Ho. O-3594 lm
applloableto the lO$ of the authorized aharea of non-par
talue oorporatlonathet are required to ba aubaorlbad and
paid ror soooraing to eub8eotIon (4) ai Artlole 15384, aupra.
This requmat oonoarna tha texabllltyof the mining 90$
or the authorized,but maubaorlba6, non-par value atoek o;C
auoh a oopporetloa.
rind nothlng ln tha law dealing with non-par
:::e
eorporatlonawhlah would Indloata that the 90$ of tha non-
par value or mminal value atook that la authorized an4 \UI-
aubsoribeb ahou.lUba tared under the prorlelonnof mild
Rouw Bill MO. 8. We believe that It is an orIgi.nalLuaus
of ths stook or mob a aorporatfonW!tIl auoh tW aa tit10
to the stook haa pfi844a to the original aubaortbers or sale
corporate atook. Ye think tho rule aa 8rpreaaeO in our opln-
ion ?lo. O-3594, an% oopled herein, la appllosblean% oontral-
llng;in answerI% the question subsltted by you.