Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
‘i
Attmtlom Mr. 1. J. (Bob) Loa
Dwr’Slr;
x month8 period granted by the
rqv-ioal of the oharter of caid
00rpotiti0n rUrpirh06 8di8r80t0rr
;:::, o? paymont of It8 .orpital rtook to thlr of-
rioe namely on Earoh 31, 1944. Tbe oorporatloa
a180 tiled 8n ill8tTUR~t, E OOpJ Of whloh i8 at-
taohed to thi8 btter, QrOpO8iU8 t0 revive .a&
extend the Ohrttrr ua0r th8 proririon8 or Arti018
i318@ ud h'tiOl0 tilbb 8d &dd th8 r8Quirrd flli~&
t80 ?OE tiliki6 8UOh ill8trUWBt in the 8U8 O? $90.00.
"8. x8 thi8 dOQmWt
and ill0 *in In8tmmmt
vita rab rrtend tin.oorporatr
0t MU 80rpontioiw
ArtI 1330, V. A. 0, d., OrtablIrher 8 method
whereby the oa Ital 8tOOk of 8 oorpontlon uay be Inoreased
8fl4 prorider, i! nter 81h, for the illlag of l orrtltloato of
iaorearrr with tb 8eontarg 0f State. ?ollowIag thI8, ArtIO1e
1331 pr0r1d.8;
'fXb0180 d thick. b7 tb 8tOOkhOl68r8to
Bay the unpalb portion o? an Inorearr oi rtook
within two par8 ?rrm the dbtr 0r tha tll* or
the OM'tifiO8tO Oi'irIOre880 illtbr Ofti O? the
Sooretarf of 8trt0, the obrrtor 0r ruoh ooapany
8haii b0 fOrfOitb6, 8ad tb rOVi8iOn8 Oi ArtiOle8
1339 t0 1aa iIlO1U8iV~, 8hal P &OTWlt th8.8aQ8 I8
iB Oa88 Ot t&e o r mtlo n or l oorporatlon.~
It will b8 notloed that under thlr Artlola, talluro
to pay the wqaI4 portion oi thr Inoreare 18ad8 to l tort*Iture
of tbs oorporatr ohartor rather tlmanto a m8ro fortelturo ?f the
right to b0 buIfJI888. Ia tbI8 OOmwdI~ ArtiOleC 1339 an6 1340
re8peotlvelr provide:
aIn oase8 ot the tallure to pay the unprld.
portion ot orpltal ltook, and to make proof thereof
to the Secretary of State within two year8 tram the
data 0t tb tiii ot'the ohartsr, tin obrrter ot
2 beoome tortelted. Suoh forfeit-
euoh oomp&ny 8he1
,uro 8hall bo ooarummated wit&cut judlolal asaertain-
ment by the Seoretary ot Eltrtr entering upon,the
', margin Of theele4Qer kept la hi8 orrio rela+s
to 8uoh oorporation8 the worb, *torteltsd,~ giving
the date snd rOraon thoretor.*
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.. . JiOi. $jXdney. &tbm, Page 3
:
"The Seorotar7 of State 8hrll notify 8uah
aorpor8.tlonbr nmlllng to the po8tottIor n8med
a8 it8 rlnolpal plaoe ot btulne88, or to any
Oth8r p PlO@ Of bU8irr888Of uoh OOX!$KW8tiOn,
86dnrre6 In It8 oorpomto IUY, 8 w'rlttra or
rinted 8htOmbUt Of tk dat. ad trot of 8u8h
P ortolturo. A noora of th0 48te and trot of
8uoh not%08 8hhrslbo kept by 8UOh oftIo8r.W
.Wlth n8pOt to th8 revIv81 a? Obarter8 whloh hrw
born forfeited ia thi8 manner, A&i0148 1341 and 134s rerrpeot-
IV81~ provrao; -
"The rtdokholderr o? 8ny swh oorpaatlon
who88 Oh8rter h88 been 80 forfeited, rho ah811
wIthIn rir InOnth8 tromthn date of suoh tortelt-
ur8 and not thrreattor, pay la full the unpaid
OaQital Of 8uOh OOmpany 8nd turnirh to tb
Seorbtary of 8tate proof of ruoh fiat a8 required
horein, 8&l in 8ddItlon rhall pay the Seoretary
of 8tato a8 tear belong& to hi8 ottioe, the 8~5
of five dollar8 por month for 88oh month and trao-
tlooal part t&reef betwren ths date of tortelture
and settlement, eh8ll be rellsved from wah tortelt-
ure ; and aaid ottioer 8h8llwrits on the margin of
eald ledgar tbr word 'revived,* giving th8 date
th8r8Ot." (Xmphaele added)
-It the rtookholdora tail to Oau8e the oharter
power8 o? 8&U oorpontion to be revived, the at-
fair8 of euoh oorapauy shall be admlnl8terad and
wOUh6 up a8 On di8801Ut1011.g
Likewire, Artiolo 1387 provide8 in part a8 tOllOW8:
"A oorporatibn 18 direolved:
" . . . .
'3. Br tortslture of it@ ohartar wlthout
judlolal aaoertilrsent under any rpeoial
provi8ion of law . . .*
BOB, aianey Latham, Page 4
‘
The ?allUrr to 8ak@ a timely payaent of the un
portion of tk oapltal rtook of th8 oorpontlon in qu88t
8utomtIoal1y forfeited tlte oorporrte ohartor. t%O 8ktUtO8
QSovida but On. IOU&I oi rotiti~ l ohrrtrr 86 torfoited--br
maklu the Q8 eat 8rd tund8hin& prqqt Ot 8llDI dthin 81~
8Olrth8 trO8 t c date of tori*lturo. i&TOOVOr, th. 8titUtO8
prorid. that uah myment md pl'OOiM8t bo mad. within 8UOh
period 'and not thoroattor.* 3% iartant oorpontlon tii0a
root of pay8ent a ftothb r lxglration Of thi8 plS'Iod,end thu8
s8ibd to avrik it8Olt. of tho OBO mthod for n+iViBjJ it8 ohartrr.
OOB8OqUOBtly, we are oamp43llad.tooti00iua0that tbr oorporntlon
ha8 born ?iB~lf di88OlT8d ud thrt it8 OhrrtW OalinOtbo FI-
rived by your loorptw ad ill iag th8 proof of tine1 'payment,
Your tirrt quertlon 18 8n8worea in the nrgatIv8.
fr o mr eOOr & in e y o ur O??iOe110 baVS l8OertRiBOd th a t
the OOlFQOZ'8tiOB
in qU@8tiOB -8 OtmrtOr@a OB AU&U& 17, 1937,
for 8 pri0a or fifty ynar8. The 8tookholdbrr of tho oorpon-
tlon have now parred a rrrolution l8klBg tlmt thr olmrter be
mr8iB8tated” iOr a QOriOd Of twenty-fir0 yeRr8. They are 8abk-
Ing to Bar0 fou approve md tile thlr rerolutlon on&or the pro-
l181OM Of fitiOlb8 1318(a) and lTilS(b)..Theo@ Arti re8peot-
iteiy prPvia0t
WSUbjeOf t0 (Lfin&in by,the SeOWX~ Of
atate 88~horalnarter provt dOa, my prlvata oor-
poratlon organized or inUOTQOT?It8& for any purpose
or purpose8 luthorired under thirdTitle, at 8ny
the withIB ten (10) year8 prior t0 tho lXpir8tiOn
of It8 otnrtor, or any ertenelon thereof, may ex-
tend 8uoh oharter and the oorporate sxlstenoe of
rruohoorporatlon for an addltIonal period of not
to ezorea fifty (so) ye*ra tru the l rpIntIon date
oi the original ohartbr, or any erteorrloathereof,
with all th8 piViiOgO8, power*, Immunities, right
of 8uooaO8ion by it8 ootporate OW, end right8 Of
property, real and per8ona1, bxerolsed and hrld by
it et nuoh lxpiretioo date to the 8UEe intent8 IMd
purpo8er a8 upon original InoorporrtIoo. Thr manner
of extending any euoh ohartor &all bo by a resOlU-
tlon in writing, laoptOa at any annual or spsolal
moetlng of rtookholder8 oslled ior that pWQo8e by
stockholder8 holdlug a majority of the share8 o?
..,” ;. :
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y, I
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,,.~. .,.
H&n. gldney Lathan, Fag8 8
oeplkl rtook of ruoh oorporatloB tlnn out-.
rktiding, 8uoh rO8OhltiOB to 8pOOity the period
or tIs8 for whloh the olmrter I8 lx to na ea 8Bd ,a
OOpr d 8uOh rO8OlUtiOB, duly OOrtitkd by the
reoretary of the oorporatlfm, under the oorporetr
8e81, 8br11 be ?ihd U& rooorded in th8 OttlO.
of the Seoret8ry of Bkto. Upon t&e baoptioa ot
8uOh z8rolutIOn and thr filing of .8 oortltled oopy
themof with thb Brorrtary of State, to ether with
payment of tlm SIlIng fee berein pnror fhod, the
ohrrtor rnd 8orpomto exIrteno8 of 8laohoorporatlon
may be extended for th8 additional prrlod of time
teOited iB 8IMh XX48OiUtlOn; ThO filing tOa t0 b8
mid tee any ruoh srtonslon of 8 .oh8rter rb.11 bo
ruoh Se8 a8 raid oorpor8tion would be required
under thn statute8 of To~ar to pay in the event
It w88 then applying ior a new charter ln8tead of
extsndlng It8 th8n exlrtlng oh8rter;
"Suoh 8Xt~UliOll8, how8vbr, my bo made OBlJ
in iB8t8BO.8 where the Seorota of meta mhall
here tamd, after prosa lave8t 1 gation, that luoh
oor.porrtIoB18 8OlV8Blt ul it8 oapltel un%mp8Ired.=
nThe provl8lon8 of Artlolr 1318(a) shall
lmna to lBd lnoluae all private oorporatlonr
inoorporrted under th8 gsnonl law8 of Texa8. Th8
prloa of ten (10) year8 prior to tb lxplratlon
of th8 oherter or an extmrlon thereof referred
to IB Art10k l516(aT 8hall lnoludr th8 p8rioa of
time during *ioh 8uoh OOrQOl73tiOB lu haV0 OOD-
tinuea it8 existsooe und8r the proviri on8 of Art1010
1589 of the Revised Oivll Statute8 of 1935."
Artlair 1389, referred to In ArtIolr~l31S(b),
provider In part a8 tollow8:
"The existence of every corporation my be
oontinuea toz ttirreys8rs after It8 dI88olutIon
from whatever oauee,~?or the purpose of enabling
those chfirgea with the duty, to nettle up it8
ettalr8 . . . *
. “--
849 ”
Im flower,, et 81. 9. PI008 Riwr 8. co., 1sa 8.1. (sill)
5OF!,rarerredon 0th.r ~OUd8, 154 8. R. (II&) 340, tha AUntin
Court of Civil Appeal8 ox ldn8d the pargoroof the l8otmnt of
ArtIolr@ tslfJ(a)8Bd &15 Pb) a8 tO~OW8:
r$O8. tOr tbb lOrOtwSt ,
Wm r8aml or lxtrnrloa of
ohbrtrrr of prI+rt*
oorgmrtIon8 organlred lladerTit1062 or Mar
(rOBOMl 18W8, bOOrU8. JWiOr t0 th. mOt808t Of
Hid lrtiOle8 ID 1939 a0 Itatut, by 8plOifiO
18ngwr)o rorldod ta tin ream81 or lxten8Ion
r?or o f l prlrrtr oorporation Inoorperoted
of 8 crha
una0r Tit10 38 or under gemral law8. Thobaorg4noy
018~888 8pooli1o811~ reoitea tht the purpo80 oi
the 1937 8Ot8 (Artr. 1318(a) sod X+15(b)We8 to
provIa for the rwmf.al or rrtenrlon of oinrtbra
of *pr$vatr oorporatloa8~ Ord8BiZ4d under Tit10
38 or under the 8en8ml law8) ma tb protirlan
for tha payale&of t111ngto88 tar the rmonl or
lxtenrlonof thr
l8 pSOVidO4 by hta.
aerrly iBOidm61 to
renew or oxtrod thek oharter8,
ruin purpore of the 8tid 4Ot8. . . .a
It I8 ~181~ wo feel, that thorr Art10lw only provide
a method wherrby th8 &th of a obrrter m8y bo rxt8ded or wherr-
b it8 O&Ark? Uy be r8BeWbd UQOtb B lXQirrtiOn Of tb pri0d ct
tLb0 8tmId in tk8 ohartbr, *Db tht thry a0 eat purport to protiao
l man8 whereb a oharter m bo revlred or mr81n8t~todmafter It
ha8 been tOI-? I tOd.stated i irfrrrntly,there ArtiOh8 potid 8
ImKl8 Of extrndi~ the Iif@ Of 8 .OorpOZ'RtiOn
beyond the tiru 8ktad
in it8 Oblrter, &At thw in no rat rttord 8M rxtenrion wham the
oorpont8 1Ur h8 born Out 8hOrt by tb@ di88OiUtiOa O? the OOF-
:&?;a~ prior to th8 lxplratlon o r th e tlmo 8QOOified la It8
.
The oOrpOntiOB iB QU@8tiOB b8 boon di88OiVOd. By
virtue of Artiole 1389, it retrinr 8 limIted oorponte lxi8tenO0,
;;iruoh exl8tenae 18 only for th8 Furpoee of Winding up it8 at-
Tha dl88olutlon 18 thm rmult or th8 rtatutory foHeItur8
OS tb; OOrpOmtiOB’8 charter xnthsr thn thr reaUlt Of th@
Hoa, sian0r Latham, Pago 7
expiration of tbs abarter. In cluob a rituatioa, Article8
1315(a) and 1315(b) oaa arrora a0 da. C0nrrquently, your
mood quertion is rho ansrared in tba negative.
Trusting that the roregoing fully answer8 your
lnqulrles, we are
Youra very truly
ATTORXEY GZNERAL OF TXAIAS
Ry 32 (i-L&I-
R. Dean gCoorhead
Assistant