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 ofrioe namely on Earoh 31, 1944. Tbe oorporatloa 

a180 tiled 8n ill8tTUR~t, E OOpJ Of whloh i8 attaohed 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 

8fl4 prorider, i! 

Ital 8tOOk of 8 oorpontlon uay be Inoreased 

nter 81h, for the illlag of l orrtltloato of 

iaorearrr with tb 8eontarg 0f State. ?ollowIag thI8, ArtIO1e 

1331 pr0r1d.8; 

'fXb 0180 d thick. b7 tb 8tOOkhOl68r8 to 

Bay the unpalb portion o? an Inorearr oi rtook 

within two par8 ?rrm the dbtr 0r tha tll* or 

the OM'tifiO8tO Oi'irIOre880 ill tbr Ofti O? the 

Sooretarf of 8trt0, the obrrtor 0r ruoh ooapany 

8haii b0 fOrfOitb6, 8ad tb 

1339 t0 1aa iIlO1U8iV~, 8hal P 

rOVi8iOn8 Oi ArtiOle8 

&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 tlman to 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 l took, 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 

euoh oomp&ny 8he1 2beoome tortelted. Suoh forfeit- 

,uro 8hall bo ooarummated wit&cut judlolal asaertainment by the Seoretary ot Eltrtr entering upon,the 

', margin Of thee le4Qer kept la hi8 orrio rela+s 

to 8uoh oorporation8 the worb, *torteltsd,~ giving 

the date snd rOraon thoretor.* 
. 

~. v,‘.” 

: 

.~,. 

. . . 

JiOi. 

born 

$jXdney. &tbm, Page 3 

: 

"The Seorotar7 of State 8hrll notify 8uah 

aorpor8.tlon br nmlllng to the po8tottIor n8med 

a8 it8 

Oth8r p P 

rlnolpal plaoe ot btulne88, or to any 

l O@ Of bU8irr888 Of uoh OOX!$KW8tiOn, 

86dnrre6 In It8 oorpomto IUY, 8 w'rlttra or 

P 

rinted 8htOmbUt Of tk dat. ad trot of 8u8h 

ortolturo. A noora of th0 48te and trot of 

8uoh not%08 8hhrsl bo kept by 8UOh oftIo8r.W 

.Wlth n8pOt to th8 revIv81 a? Obarter8 whloh hrw 

forfeited ia thi8 manner, A&i0148 1341 and 134s rerrpeotIV81~ provrao; - 

who88 

"The rtdokholderr o? 8ny swh oorpaatlon 

Oh8rter h88 been 80 forfeited, rho ah811 

wIthIn rir InOnth8 tromthn date of suoh torteltur8 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 traotlooal part t&reef betwren ths date of tortelture 

and settlement, eh8ll be rellsved from wah tortelture ; 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 atfair8 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 

8utomtIoal1y forfeited tlte oorporrte ohartor. 

qu88t 

t%O 8ktUtO8 

QSovida but On. IOU&I oi rotiti~ l ohrrtrr 86 torfoited--br 

maklu the Q8 

8Olrth8 trO8 t c 

eat 8rd tund8hin& prqqt Ot 8llDI dthin 81~ 

date of tori*lturo. i&TOOVOr, th. 8titUtO8 

prorid. that uah myment md pl'OOi M8t bo mad. within 8UOh 

period 'and not thoroattor.* 

root 

3% iartant oorpontlon tii0a 

s 8ibd 

of pay8ent a ftor thb l xglration Of thi8 plS'Iod, end thu8 

to avrik it8Olt. of tho OBO mthod for n+iViBjJ it8 ohartrr. 

OOB8OqUOBtly, we are oamp43llad.to oti00iua0 that tbr oorporntlon 

ha8 born ?iB~lf di88OlT8d ud thrt it8 OhrrtW OalinOt bo FIrived by your l oorptw ad ill iag th8 proof of tine1 'payment, 

Your tirrt quertlon 18 8n8worea in the nrgatIv8. 

fr o m r eOOr & in e y o ur O??iOe 110 baVS l 8OertRiBOd 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 oorpontlon have now parred a rrrolution l 8klBg tlmt thr olmrter be 

mr8iB8tated” iOr a QOriOd Of twenty-fir0 yeRr8. They are 8abkIng to Bar0 fou approve md tile thlr rerolutlon on&or the prol181OM Of fitiOlb8 1318(a) and lTilS(b).. Theo@ Arti re8peotiteiy prPvia0t 

WSUbjeOf t0 (L fin&in by,the SeOWX~ Of 

atate 88~horalnarter prov t dOa, my prlvata oorporatlon organized or inUOTQOT?It8& for any purpose 

or purpose8 l uthorired under third Title, at 8ny 

the withIB ten (10) year8 prior t0 tho l Xpir8tiOn 

of It8 otnrtor, or any ertenelon thereof, may extend 8uoh oharter and the oorporate sxlstenoe of 

rruoh oorporatlon for an addltIonal period of not 

to ezorea fifty (so) ye*ra tru the l rpIntIon date 

oi the original ohartbr, or any erteorrloa thereof, 

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 l xpiretioo date to the 8UEe intent8 IMd 

purpo8er a8 upon original InoorporrtIoo. Thr manner 

of extending any euoh ohartor &all bo by a resOlUtlon in writing, l aoptOa at any annual or spsolal 

moetlng of rtookholder8 oslled ior that pWQo8e by 

stockholder8 holdlug a majority of the share8 o? 
..,” ;. 

.: , 

. . 

,, ‘i ., 

y, I 

,,.~. .,. 

H&n. gldney Lathan, Fag8 8 

: 

I~ 

.~ 

oeplkl rtook of ruoh oorporatloB tlnn out-. 

rktiding, 8uoh rO8OhltiOB to 8pOOity the period 

or tIs8 for whloh the olmrter I8 l x to na e8aBd , 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 f hod, the 

ohrrtor rnd 8orpomto exIrteno8 of 8laoh oorporatlon 

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 

1 

of meta mhall 

here tamd, after prosa lave8t gation, that l uoh 

oor.porrtIoB 18 8OlV8Bl t ul it8 oapltel un%mp8Ired.= 

nThe provl8lon8 of Artlolr 1318(a) shall 

l mna to l Bd lnoluae all private oorporatlonr 

inoorporrted under th8 gsnonl law8 of Texa8. Th8 

prloa of ten (10) year8 prior to tb l xplratlon 

of th8 oherter or an 

to IB Art10k l516(a T 

extmrlon thereof referred 

8hall lnoludr th8 p8rioa of 

time during *ioh 8uoh OOrQOl73tiOB lu haV0 OODtinuea it8 existsooe und8r the provir i 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 ttirre ys8rs after It8 dI88olutIon 

from whatever oauee,~ ?or the purpose of enabling 

those chfirgea with the duty, to nettle up it8 

ettalr8 . . . * 
. “-- 

849 ” 

PI008 Riwr 8. 1sa 8.1. 

5OF!, 

Im flower,, et 81. 9. 

rarerred on 0th.r ~OUd8, 154 8. R. (II&) 

co., (sill) 

340, tha AUntin 

Court of Civil Appeal8 ox 

ArtIolr@ tslfJ(a) 8Bd &15 P b) 

ldn8d the pargoro of the l 8otmnt of 

a8 tO~OW8: 

r$O8. tOr tbb l OrOtwSt 

Wm r8aml or l xtrnrloa of ohbrtrrr of prI+rt* 

oorgmrtIon8 organlred llader Tit10 62 or Mar 

(rOBOMl 18W8, bOOrU8. JWiOr t0 th. mOt808t Of 

Hid l rtiOle8 ID 1939 a0 Itatut, by 8plOifiO 

18ngwr)o rorldod ta tin ream81 or l xten8Ion 

of 8 crha r? or o f l prlrrtr oorporation Inoorperoted 

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 t111ng to88 tar the rmonl or 

l xtenrlon of thr 

l 8 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 wherrb it8 

t Lb 

O&Ark? Uy be r8BeWbd UQOtb B l XQirrtiOn Of tb pri0d ct 

0 8tmId in tk8 ohartbr, *Db tht thry a0 eat purport to protiao 

l man8 whereb 

ha8 been tOI-? I 

a oharter m bo revlred or mr81n8t~todm after It 

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 l xplratlon or the tlmo 8QOOified la It8 

. 

The oOrpOntiOB iB QU@8tiOB b8 boon di88OiVOd. By 

virtue of Artiole 1389, it retrinr 8 limIted oorponte l xi8tenO0, 

;;iruoh exl8tenae 18 only for th8 Furpoee of Winding up it8 atTha 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&IR. Dean gCoorhead 

Assistant