THEATTORNEY GENERAL 

OFTEXAS 

GERALD C. MhNN AUSTIN 11. TEXAS 

*-z-roHNzcY Gzzxu~HAz. 

Honor&bile Will Mann Richardson 

As~lstant~S~cretarg of State 

hustln, Texas 

Dear Sfr: Opinion No. O-4353 

Re: Corporations i Sections 2 and 9 

of Article 1302, ,R.C.S. 

Your request for opinion has.been received and‘carefullg 

considered by this department. We quote from your request as 

follows: 

'We are enclosing herewith an application. 

foil a bhtititep for the Zion Lutheran Social Ass.ociatlon marked 'Exhibit B'. 

-'"You will note that In the preamble of the 

charter IF is statd.that~a corp6ratlon wishes 

to-come under the provisions of chapter goof 

Trtle 32 bf the-Revisea civil Statutes, 1925: 

The purpose of the corpdration is'st&tsd.to be 

&.benevblent one 'The maintenance, operation, 

acqultiitlon an&control of recreational facillties for the exclu'srve benefit of and In the 

Interests' of its members aiia for which no profit 

shall accrue to the corporation'. We have advised the'lncorporators that the corporation 

coul&be 'formed under Subdivision 9 oft Artlcle 1302'as a sports club paying the $50.00 flling fee and the annual franchise tax. . 

"AttorMys for the incorporators, however, 

Insist that on~the basis of the case-.of Evans 

et ux v; Southside Place Park.Assoclatlon, 154 

S.W. 2d, 194, that the corporation is of such 

a benevolent character that it should be exempt 

from,franchise tax and should pay only the 

$10.00 filing fee. We call your attentFon to 

the fact that the purpose clause contains the 

provision 'for the exclusive benefit of and 

in the interest of its members'. 

"We w0ula appreciate an opinion from your 

Department as to whether such a corporation 
Honorable Will Mann Richardson, page 2 o-4353 

should pay the $50.00 filing fee and annual 

tax, or whether.there is such a benevolent 

corporation as should be exempt from tax and 

pay only the $10.00 filing fee." 

The case of Evans, et ux v. Southside Place Park Association, 154 S.W. (2a) 914, referred ~to in your letter, Is 

not i?i point and does,not touch the question involvedin your 

request. 

It is cur opinion that the proposed corporation cannot be chs~rtered under Subdivision 2 of Article 1302, Revised 

Civil Statutes, as a "benevolent" corporation., See authorities 

cited in opinion No. O-3991 of this department, a copy of which 

Is enclosed herewith for your information. 

It is our further opinion that the proposed corporatiM. 

%danfiot be incorporated under Section 9 of Article 1x02, R.C.S., 

&s an "innocent sports" corporation. See authorities cited in 

6pinlon'No. o-2866 of this department, a copy of which is enclosed herewith for your information. See also the case of 

Smith v:Wortham,'157 S.W. 740, (Sup; Ct; oft Texas). Also see 

opinion of this dkptirtment datea March 7, 1933~, wpitten by 

Honbrable Pat Dougherty, A5slstant Attoiney~General of Taxas-;. 

Vol. 344; pages 184-5, Letter Opinions of the Attorney General 

bf Texas, which holds that the purDose c1ause.M the chdter. of 

K'izkportitlon tinder Section 9 of Article 1302, R.C.S.; should 

tipecifically name the "Innocent sport or Innocent sports" to' 

be sponsored and that the Secretary of State should disapprove 

the charter of a'proposed corporation applying under said sedtlon to %uppo*t, sponsor and encourage Innocent sports among 

Its memberss*ch as wrestling, boxing and various other and 

similar sports for the amusement of Its members". 

Since the proposed corporation cannot be legally chartered iinder either Section 2 br Section 9 of Article 1302, R.C.S., 

sour question with reference to fees and franchise taxes therefore becomes moot. 

WJF:GO:wc 

hP&XlED FEE 10, 1942 

s/Grover Sellers 

FIRST ASSISTANT 

ATTORNEY GENERAL 

Yours very truly 

ATTORNEY GENERAL OF TEXAS 

By s/Wm. J. Fanning 

Wm. J:.Fanning 

Assistant 

Approved Opinion Committee By BWB Chairman