OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Thlr will -1
April l6, 1941, b l&a
sent on the pwmt1ana
tiai to here ret oat par
parts thereus.
fidavitrhow that
etuekhw beeaapaidln&t
yithe atterwya fur thb iac~aturr bavtsooa-
tended t&at beoawe the total anouutprid in ir mere
than $25,000.00 and because 01oxu thrn Iti uf tlw t&al
1.42
iionorable
Uu. J. Lav~on,pses 2
authorlssdnumbor of @hares, treatIn@all the lh u o r
the 8bmb, have been paid in, the 6OFpOPatfO8i mbt8
the requlrment for no par rtwk oorporatlcmarbt out
la &abdfvirion (d) of Artlale153&l.
-8 Depwtmont ha8 JmtbrpPetod
that rubdiVA-
8fM t0 1DUil that Ot but lo# Of bUh
Of thb dfff.PUlt
al.auer of rtook mu8t bo pald %a, am to hold othomri80
vouldallav aoorporrtlontohavb l velylUqg@ authow
iced capital vfth lam8 than 10$ of the authorlud
amountpaid la. For inrtaaw, under that IlltoPpretLe
tlon, a aorporathn oould havb 10o,OOO rhamr or em-
mea pald La at the rate of lt@ per rbm, and aould
kla~010,000r&sMr ofpreferr6uvehi?nl~l8harepaM
in at ~24,000.00 r sham, then the aorjm~atlon vould
have paid In ltr r25,000&O, would have 11,000of it8
20,000aha~~rpafd IIX,and yet It vould have an au-
th0mti +a4,000,000.00 pm0md 8t06k. obv1~4,
a ultPamb
th lr 3.8 OILIb, drrroa8 th oe8.%8 uw nrb-
mlttlng 18 not bxtrbme,but in order avoid the ts
porrlbfllt~of ruoh an bxtrow OUT, thir Imaetmut
haa fntupr8todtha 8tstut~8toxwquf~* thatatleut
10~afew&alaar of rtoakmwtk paid In.
%b Yould appreolato an opln.wl frar pur Iwpue-
meat U to WhbthW 8UbdfVf8iOX~ d of ArtiOh 15% Fe-
qufror that at learnt thblo$ 0s or numbbr es eha~08
.a& elur of rtookbe rubaorlbod a& g&d tt t$&l
of faaerperatlon, ocv?Wlw~ themqulmmua
ltatutb mmotbjhavlilglO#ofthetotalnl&or of
ahmu of all alure 8ubrea'lbd and paId.’
&wele 1538d of the AOVl8ul 019il at?&uter o? %exw,
8bt8 Out e&rtn l’8btiVb
POqUkPO~tD t0 thb i88- Of 8h8F.8
Of ltWk Of BO g u ,Va lW. m tb .@ h k WflU@P O@ P Odt0b o
mad. to th@ sWPbtU7 or Hate by the lnooPpoPatoPs, 011' the
dlreotor8 0r the owporatlon l.n thb otent of an uendmut to
UI bd8tflhg 6hUtOr, 18 lUbdlVf@fOA (d) thbP.Of lfhiob. mVid.81
“(a) The nllmbeF or 8haro8 vlthallt aomfllal OF
pa~value 8ubrerlbedand
theaatw~loawiberatUn
rbOblV*d w thm O~Ol'atiO23 fOP @IlOb 8hUWUj urb
upon reorivln8ruuh eertitlaatsit &all k t& duty
0s th6 &omtary of atata, on pfbywntof office f-8
and frudlrotudw, to file uadr86ordthm &W-
tev, or awndmaat tbnmeof,of rwh otbrporatlonand
t0 ~fV4 hi.8 Obl’tifittbt4 BhOWi~ the F4COPd th.tW-
of, provided,howevbr, the rto&i?Cld4r8 of any
CO~OlWtiCll 8SIthQdS~ th4 iSRUlE Of 8h8FbB Of
it8 atoak vithbut naalnrJ. OP par V&IAI shall be
rqulrad, In god faith, &a 8ubrcriba and pay fop
at hi%& ten per abnt of ths authorized 8hWW t0
ba fa8tt4dvithoutnominalor prr v82aw kfon erld
~srporatitsa 8h411 b4 tthartend or hav4 it8 4haFter
mended 80 80 to euthoriretLu f~8uanm of 8buwb
vlthuutpar or nomImi value;gwooldodfurthor
that In aa bvent the 8mmit 80 paid 8hsll k loa8
than $25,000.00."
%m ldvfa th e a t
o o r p o r a tla
1 84a 8fdllOV81
pU Vtiu4 Bt4Ck dlvlded irrfo
&U’Oil Of 03.484 8. (2) 1,000 &BP48 Of Ba30.
*illlO. T h e fl.lOOt’& 3OF tltOl’8
h tlY0~Ok l’Od l VdAW ?$ h & ~~~
lh8r4 oaths pxmfsmbd, $l.OOperahw@ an the Oamwm
olm84A
aad have plea& tl~b~ue cdathe Oh48 B ~~fW@@d. You adrim
tbrt O& @ WSA UidB Of th 8 P lWfemd lt44k U’b flbtttdar;l. It
thOZWfU’O’, fOF JW t0 Vt&W th4 OhlB@ b m-
@ham for the purpou of
by A~Male 1538f of tbm S
ft.vould appear,thonfore, that tha 433,180ahava to
bo pald in 18 18811than tba (10) pm oent of the neaema~~lf ds-
eland value of all the no psr value 8bw44.
o ulta t4th a tthatbozmqw
b forth0 faeorpontom
wn-
toad that th# amWIlt paid Illi@ 8tllUthW +?5,000,@Id
44U8.
booaumomom than tea per Muit of the total authwlssd ntanbor of "
~bawa, treating*I1 the 8hW48 the Umb, ha8 bemk paid in . . .
that the 4tatUt4 h8 bsO!IaorppllodWith. w9 Ut&tOt 844 UpOtI Vhat
thoory&llthe 8hu-48 oanbetnoto4tho MPI th4 doalasrd
ealw of the &weferrud lxwkmutba $lW.aO PWrhrreVhllo thet
O? th4 QODlYI
ltO6
P k18 bUt $l.%
maa Logiolatur0 f.n thb uu of tha latquago *
ltO& h OldW8
....oh8li~SS rbqulred,in 43006faith,t; I%-
rorfbeand pay for at lea8t ton per sent of’the authorized
8bre8 to be Loruedvithoutnominal or par value . . . .* might
have a8 appropriately dimalandthat at least ternper sent o? the
dealand ~aluo uot bb paid in. us b4114vr tmt tha l4glolatun,
In the paooqe of suob Article1538b,lntendbdto and did roqulro
tha paymentof a titdmm of ten p4r Gent of the deolamd vtiub
Of th0 Oh4Z’48 Vfth thb fUl’th4P pPQVf80 th8t A0 Ow vould be
permIttedto Or@lBfl!b Uld i88ur, 8hIlXW8 Of A0 &WX’ VdW With L
prid in oapital of leas t&m 425,000. Such hao Lq been tb
intbrprotatlon of tho statute m the various Swrotar#es of Strte.
We hold, thwofere, th8t a lIlamum a? ten per coat ox
0ad.t dAO8
of otook to bo 188U8d mot bo mf.d fli, tl'4ating tiM
p nfundlto6k, dividediato 4kOB A mad &.a88 8, ao Oa# ahO@.
Youra v4q tml4
,ATMllfEX-
ATTORNEY GENEZ'&
AU1 ata&
LAtoj