148 

OFFICE OF THE AlTORNEY GENERAL OF TEXAS 

AUSTIN 

Eonorable Tom L. Beauehsap 

8430mb~y 0r sta 

Audiin, Texas 

Bear slr: Attention Claud 

A8mistent &are 

tter or Au&u& 5, 

k, the roibakg 

Qomleotlon th.Fewithr - 

\\ \-A 

, In an8wer to 

pounded bj this 

C T Corporation 

the C T Corporautharized to mpobtainin& perbusiners in Tsxas~and in 

aorpomttonfi to laoorporete 

Ira*ra of the 8tata of Texas. 
Honorable Tom L. Beeuohemp, Page 8 

"1. I8 the looel ettarnsy rfolating the Uneuthorlaed Preotlos Aat 

by filing these paperr,$or end on bshalt or this oorporetio&whloh is not 

euthorised to preotioo law In the State 

or Texas? 

"S. Would thl8 oiiioe be auihor%zo4 

to refu8e to permit thl8 attorney, or 

any othem attorney, ,to rile ep~lloetion8 

ror peraaite or rorei~tioorporetion8 to do 

busins in TeXe8 snd Other OOrpOrete p8- 

per8 fbr the C T Corporation System or 

the Corporation Tmmt Company or my other oorporation attempt;%ng to praatlae lm 

in violation or our Penal Code?" 

u opinion x0* o-977 Or t&ii8 d8peZ'tQUJUt by riOnOI.- 

able Ardsll Williama, it we8 held, among .other thlng8, that 

the drawing and filing or 8pplloetlona ror pennit to do 

bu8ln888 in.Texaa on b&elf of rordgu aorpor&tidne by the 

0. T:. Corporation Syhtm, e Delawem eorporatlm, et the 

in8teMe and reqwst or mmlber(1 or the bar8 0r iCacelgl~ 

8t(LtQ8, OOIU5titUt88 the plTiOti6Q Or law by seld,OOrpOra- 

!tion, tmd thet suoh note ere uxtlewf'ul a a vial&ion of 

Article 43Oe, Vernon~8 PenaL-code, nemely, the Unlawful 

Praatioe Act or Texas. 

The rirst paragraph or 8eotion 3 or Artisle 4306 

wa8 the prlnelpal basis of,the above ruling. It reeds 88 

followsr 

"It ah611 b8 unlewful ror any 

corporation to praotioe law as dertxmd by thi8 Aat or to appear as 

an attorney for any person other 

tfian itaelr in any oourt in this State, 

or before any judloial body or snr 

board or OOauni88fOn ot the State Of 

Texes; OF hold itself out to the publie or advertise a8 being emtitled~to 

praotloe law; end no aorporation 8heiLl 

prepare oorporete ohertsr8 or 8mndmanta thereto, or other legel doouments ' 

not relating to it8 authorized buainese, 

or drew wills; or hold itaeli out in 

any meaner direatly or idiireotly as being entitled to Ao any or the ioregoing 

6Ot8; provided, that the fOre@ing ,8hell 
Honorable Tom IA Bseuohmp, Page 3 

not prevent e oorporcltioh, pereon or 

eseoaiation 0r persone rrom.empI.oying 

en attorney or oth8r egent or reprsawntetlve In regard to its owhprfeire 

in ehy hearing or lnve8tlgetlon beiorr 

any a&ninls.tratlre orrioial or body.* 

It now appears that the CO T. Corporation System, 

whloh we ea8ume lnoludee the Corporetlon Trust Comp8ny, 3.8 

eeekt~g to do lndlrectlp whet 6mount8 to en illcrgal sot ibr 

it t0 do dlreot3.y. i.e., preeentlng to the seoretery 0r 

stats the appllontlons or r0ntign oorporatlon8 for permit8 

to do bumlxmm, and other oorpomte papers, through a looal 

6ttOrll8~ in Aoptln. Thm looel attorney la'not repre8entiry 

tba 0. T. Corporation Syetea in reepeot to ltb own bU8iaeS8 

in a &riot tmme4 or the word. He ie rather hmndllxtg ior 

them a8 a more or lea8 routine netter bu8ine8eor 00nai 

Oli~~ttS 0r the c. T. Corporetlon sy8tea, &a., riihig or 

p8per8 end other OOrpOmte in8trument8~ whloh it i8 ib 

lsgal‘for the oorporatlon ltnel? to tren8eot. 

The C. Ti Corporetion Sy!&em, alnoe'lt i8 Pot a- 

, 

ploylng 8u attorney -in regard to It8 own timup, ia not 

Within the p\lrviOW Or the rOimiRg pr0Yi80 in th% flmt 

p8mgr8ph or seotlon 3 or Arti 4506, above quoted: 

“. . .provided, the&. the Soregoing 

Shell not pIWYe# a OOrpOrlltiOn, ,pereon 

or e8eoolatlon 0r pmson8 mm employ- 

,lng en attorney or other egent or preprseentative in regard to it 8 own aitair8 

in 8ep heerlng or investlgetlo~ before 

eny e&ninl.st~etlva of'flogal or body.* 

Section 7 or Art1018 430a, eupre, providr8; 

"Any agreement by 8ey per80uI, 

oorporetlon, or eS8OOl6tlOIA in vlolatlon or thl.8 Act 8hal1 be lllegel end 

euah person, oorporation, or 688ooietlon shell not be eble to reodvsr'ror 

any 8ervlosa rendered in rloletlon or 

this Aot, either on the oontreot or 

a maal-oontreotuel obligation. If 

any pemon, aorpoketlon, or e8eooletlon 02 lXUWon8 8hdl1, by any eo&or 

t~~i8810n in vloletlon of thle Aot, 

06U8e 8x1~ 1080, d.mnqe, or fnjU* t0 
Honortible Tom L. Beanahamp, Page 4 

any pemon, oorporatlon, or amooiatl& 

of persona, euoh peraon5, oorporatlon, 

or assooiation of pareons 6hall be liable in actual damages thereror to Amy 

person, oorporatlon, or aaeooietion of 

permae who sustained any aueh loam, 

damage or iajury; and suoh liability 

ehsll be absolute end not dependent 

UPOA my qUeStiOn Or 5hOWb Of WMAt 

of skill, oare or dlllgenoo.n 

If the above eeotion ie Aot aimbd at such a alt 

uation aa we oonfront IA this iAi3tanae. we fall to eppreaiate the purpoes of its enaotme~t. Obviously the C. Tc Corporatlon -System a-the looal attorney hate OAtOTOd tit.0 a~ 

%gremt . . . iA ViOlatiOA Of the Aat*. Ths Whob t-r 

and ob1eative of the Unlawful Praotiioe Aot are ooAtr+veA5d 

Of oourse, by "any agreement . . . IA rfolation 

of this Aat" 1s meant primarily the OOAtlWOt between the 

ollant apd the oorporatlon praotiolng law in riolation of 

the hot, but the mop. of the phr558 ti wide l no u& to a ubraoe em arrangement aoah aa we hare before ~11. ,Jhe right 

of the looal attorney ta npresmtt a legitimate ollaaf %8 

UAqueSithmed. Ho ha5 m right to paid #md abet a olisnt in 

riolatloA 0r the law of this State. 

The looal attorney ooaupies'the 5tatAa Of 8~ -At 

or repremntatlre of the aorporatlon,appointed beoama of 

his law liaentae. ror the p~xposo or airaumrentirrg the parpose or a wholeaome~atatute. 

Presidio County va. Shook, 24 c%v. ~App. daYi, 

%O a*. SW. 

*It is well tuxderstood that the 

relation oi attorney md olient 1s a 

relation oi agency, and in 1ta:general 

features ie govemod by the scans rulsa 

whioh apply to other af$enaIeB.* 

Of aour~e, the attorney, a5 agent of his pri.noipal., is authorized to praotiae law, whereas hie &ieAt is 

not, but it is against public pollor for the attorney to 

aeslOt his olient in the violation Ot a peAti law O? the 

State. 
152 

Ronarable Tom L. Beauohemp, Page 5 

The situation at hand ie ainilar to that in whioh 

a aeaond oontraat grows out or, and is oomeoted with, a 

prior Illegal contract, with the lllega#lity of the prior 

oontraat entering into the new oontract and rendering it 

lllegel. 

It ia our opinion that the local attorney ia riolating the Unauthorized Praotioe Aot, that is, &%iale 4SOa, 

Vernon*8 Annotated Penal Code, by filing a)plloatloas of 

foreign oorporatlona for pernits ta do business in Teraa 

for and on behalf of the C. T. COrpOSRtiOA System, whlah ir 

unauthorized to practice law in the State of Texae. We further hold that the Seoretary of State may deny 5~ attommy 

the right to rile spplioetlons for pennits for rorelgn oorporatlons to do businees in Texas, end other corporate papore for'the C. T. Corp6ratloA Systexi, or the Corporation 

Trust Company, or any other corporation attemptlng to praotlae law in violation of the Penal. Code of this State. 

Trusting that the abme fully answers 

quiriee, we are 

Yours very 

your int-r 

ATTORNEY GENERAL OF' TBXAS