a c
.
OFFICE OF THE AlTORNEY GENERAL OF TEXAS
.
Eonorrblo Oao, x. shoppua
caclrptrollar or Fall. koouatr
Aurt ia 4 rear
intotrst in raeh rtoro omd b7 ‘A*.
m tutdorrtma b7 yaur 8aooad @eatdon that the oriff
rtookholhrr ln thr oorporatlaael80 owa the rujority
-in torort ln
Ioaorablo@ea. He Sheppard,M&3& 10, 19SQ9,
PageIL
w TaXa6 Uhdn Strom taZ .hlt i8 ICIWW~%as Hweo Bin IJo,
l8‘ ASt8 1$as, mrtprwthI%8glalature, lNrst called 8esa&3n, a&
it 18 4odlfled ss Artlole lllld in Verncrn’s Annotated Penal code &
Ta8B*
i
It ~I.11be noticed that Section 6 provides that this law
shku apply to every firm "which Is * * * ultimately aontrolledas
direoted by one Exinagamentor association of ultimate mana ament*l
and that Seation 7 says that the Vxwm tstoret * * * E*a-
a
stied to mean * * * any stores cm an meroantile sstabliahm&n
by ths same person, 5** oorpomtion, copartnsr-
* * * eont~olJ.eQ,
ship or asmoiation * * *.*
me key wards in these seatlone are %anagement* and “eon-
trolled*. -If the store8 in qestion ar8 under the 88188manaaement
OF control, then they are in the sBme "shain~.
The words Wanags* and "aontroln were adlsslsntedon by the
-rem court or Tbxaa In the 0688 or dndexson vs. Stoakdale, 62 Tex.
64, aa IallWa:
Ffhe usupllerrdordinary significntionof
the umd 'oantrciL* ie thr same 68 the Word
The Toxar ruthoritlro, lo roll ao ii& Other muthorltlto
I oltod; olrarl7 ladio*to that to nma.acIrad to ooatrol meuu thr oum
I thing;and thilttbO* t.N both Via to -t=in, t0 tive 8uth0Tiv
~*r;~anU to gwonb
1
the thirt7 #tom@ thgt 7ou rok about ir 70~ flrrt quao-
tloa are orrh partarrohi 8. vbro 10, aa4 who hso, tb rrnrumoat
~4 eoatrol ot rtoh Oz t& 08 ltoroot tair c(aOrtioa io prmtla
oworod la thr eau at'011 hame & 11 lty epai0d0 TO.
ct. at. App*) 8116. v. 1054, w f0"I;:our1
v30reu aa0tO0 t0 dinu7~ubw-
ohipo the eoatrol ma maaa of tbr buol-
a080 10 ultb the ~nrjorit7 Dartmrr, ti-
thoughit am7 b7 wgremat ocamitttd to o#
or molu ot the partaerrr*
The oamoa owaerin theserto7rOlwhoa Jar deob~ti U
*A*, only mo a onehalt latenot 10 lroh*of ti* rtottr. 15 4-o
not owa l arJorltf iatorort raa, thmton, he oranot oontrol os
VMp the00 etar@B. A0 far a* *A* lo 00dObrn0a,the ltoreo am
not aaar tht l(IPIH ar~-Ont or 00otrol.t aa it lr lp wlu ntthat
tbn 16 a0 ocmkonmanggameat or ooatrolffaa -7 othw r)tm4DolaL
norable Gee. H. Sheppard,'Earoh10, 1939, Pa&a 4
Will
829,
.
Xonorrblo 0.0. R. Sheppmd, Maroh 10, 193, Pa@ b
olrtloa af \rltLartrmma-myoma and thrp oam within the .reFt of
Sootiao 7 ln that they are aontrolled by tbr care p~rsoa OS
6660618tlOlL~.
I
It ia oU? brlfei the phra66 "which 16 l l ’ c o ntr o l-
that
lab l l l b on6 mamgomemtor lr so o ia tio ofnultl.matOmanag63Pentw
ln &oao8 i 6nd thr fhr-666*r to mrl.* l controllrd by the 6emo
eop#rba48hi~ or a66ce 6tlonw.in &ctlon I do66 not mean that tlm
oonttol t aamgamant mwt be la one lnblthusl prrson, but it means
what it ‘.a 6nd that 16 th6 6tar66 lr6 16 th6 laao ohsin It
the #oat 2 md raaagmrnt ir in thr aan6 666ooiatlon or oopartner-
6hip. m th6 661~6asrooiation or oopartnerrhlpa6 usrd th6r6 16
msant tbr 66m grarp of p60plrr
If a group oi three mm, or any other number cou1.dro-
rtraln or gotorn, or h&d authority over srrrral 6corea, having 6u-
thorit over 6a60 of the rtomr~br virtue of owning a majority of
tha ltea k
of the that
held the tltl6 to those rtorea;
sorporatlon
and haviw authorit 016r the other #tore6 by virtue oi being mrr-
jorlty owner6 of the partnorahfp that owned then, then those stmes
would all bo ln the 8am ohaln just the #ma a8 if one individual
person oonttolled all of the stom6.
1 Our 6nmwef to pur first question 16 “_no*iand our hewer
I to four 6ooond Quoeti3n 16 “yen”,
Pours tory trulf
AlToRNEY GmxR!..tOP TInAs
I
w Ceoil C. Rotsoh
Aseiatant
I ATTORNXY c3dH’HtAI.a
OF 'TEXAS