Untitled Texas Attorney General Opinion

‘: .,, 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.