Untitled Texas Attorney General Opinion

OFFICE OF THE A-ITORNEY GENERAL OF TEXAS AUSTIN Honorable U. 0. ylowers Seoretary of State tinatin, Texas Dear Sir: Attention: iir. i?nais C, Favors Opinton 30. o-72 He: Calculation of revi& fees for corporatie who3e\rlght to do business h.ls\bpeeh. forfeited for r3ilury to' py frs&shlse tax. .I' \_ 'XIare in receipt.df your la&t@ of Xovember 14, 1939, in which you submit the,icrllowinrj~/question to this De- partment ror a5 opinion: I, \. Wmul& iha. 3ecrebar+ ~of State, the SIX months he figure and for the entire Artlole 7089, pro- f Maroh of eaoh year, and imposes a anwunt of the framhise tax for failure Thereafter, on the let day of Xang the e and payable to the Seoratarg of State if the tax is not aaid :-rhendue, the tax- payer then beooaes liable for an additional penalty of ZS$ of the amount of the tsx for late paDent (mt. 7091). The Secretary of State is required, during the mnth of zay, fo notify eaoh corporation which ha3 failed to pay its franchise tnx on or before the 1st day of Ay, that unless such tax is paid, together with penalties thereon, before the 1st day of , , p Honorable 3. C. Flowers, Page 2 July next following, the right of suoh corporation to do busi- ness in this State will be forfeited without judicial ascertaia- ;nent (Art. 7092). suoh rorreiture being accomplished by noting upon the records of the Offiae of the Secretary of State the words **right to do bUSiUeS8 forfeited." (Art. 7091). The method of reviving the right of such corporation to do business is provided in Article 7092, which reads, in part, a8 rOliOWS: "Any corporation whose right to do business say have been forfeited, 9s pro- vided in this chaoter. shall be relieved be less than five dollars. When 8UCh tax and all penalties shall be fully paid to the Secretary of State, he shall revive the right of the corporation to do business within this State by canoelling the words, 'right to do business forfeited,' upon his records and endorsing thereon the word, 'revived,' and the date of such revival. If any domestio corporation whose right to do business within this State shall here- after be forfeited under the provisions of this chapter shall fail to pay to the Secretary of State, on or before the first day of January next following the revival, (forfeiture) the amounts neoessary to en- title it to have its right to do business revived under the provision6 of this chap- ter, such failnre shall constitute sufficient ground for the forfeiture, by judgment of any oourt of cospetent jurisdiction, of the charter of such do:aestic corporation." Article 7095, ;ievised Civil Statutes, i.925, provides, in part, 3s follows: :-Ionorable:ii.0. Flowers, Page 3 "The Attorney General shall bring 2ui.t therefor against any corporation which may be or beoome subject to or liable for any franchise tax or penalty under this law; and, in ease there may now be or shall hereafter exist valid grounds for the forfeiture of the charter of any domestic private corporation, or failure to gay any franchise tax or franchise taxes or penalty or penalties to whioh it may have become or shall hereafter be or become subject or liable under this or former law, he shall bring suit for a forfeiture of such charter; * * *o It was held in Federal Crude Oil Com~ny vs. Pount- Lee Oil Company (Supreme Court, 1930), 52 S. 1:. (2d) 36, that t/ the language contained in Article 7092 quoted shove, providing that the frsnchisq tar,and penalties due might be paid at any time within six mnths after the'forfeiture, is directory, and that the corporation may be relieved of the forfeiture by gay- ing the franchise tax with accumulated penalties after the six months period if at %he time payment is made the State hIa.not availed itself of its right to bring suit against the corpora- tion for the purpose of forfeiting its charter. As we construe this statute, the six msntha aroviaion does not refer to or fix a liait upon the time for calculating the five ger cent per month revival fee, but is a limitation upon the right of the State to forfeit the charter. It was intended to allow the delinquent corporation six months from the date of the forfeiture within which to revive its right to do business and during such six months period, the Attorney Genera1 is with- out authority to institute a suit to forfeit the cor_;roratechar- ter and dissolve the corporation by reason of its failure to pay the franchise tdx. This oonstruotion is in accord with the conatruotion and application of the statute made by the Secretsry of State over a long period of time and we would not be justified in departing therefrom unless good reason existed for such lotion. I+* is our opinion that the Secretary of Ztsts should collect a revival fee from a corporation whose right to do business has been forfeited for failure to >a:r its r’r,mchise tax, at the rate of 5;J per month, or frzatiocal ,art of 1 month for the entire period Prom the date of forfeiture until *. .. Honorable X. 0. Flowers, Tage 4 the accrued tax and penalties are aaid, rlthoua sapent :nay be aade lore than six sonths after the date of forfeiture. Yours very truly ATI'ORNEY G3ERAL OF TEXAS ccc :RS