OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Thlr will -1 

April l6, 1941, b l&a 

sent on the pwmt1ana 

tiai to here ret oat par 

parts thereus. 

fidavitrhow that 

etuekhw beeaapaidln&t 

yithe atterwya fur thb iac~aturr bavts ooatended t&at beoawe the total anouut prid in ir mere 

than $25,000.00 and because 01oxu thrn Iti uf tlw t&al 
1.42 

iionorable Uu. J. Lav~on, pses 2 

authorlssd numbor of @hares, treatIn@ all the l huor 

the 8bmb, have been paid in, the 6OFpOPatfO8i mbt8 

the requlrment for no par rtwk oorporatlcma rbt out 

la &abdfvirion (d) of Artlale 153&l. 

-8 Depwtmont ha8 JmtbrpPetod that rubdiVA8fM t0 1DUil that Ot but lo# Of bUh Of thb dfff.PUlt 

al.auer of rtook mu8t bo pald %a, am to hold othomri80 

vouldallav aoorporrtlontohavb l velylUqg@ authow 

iced capital vfth lam8 than 10$ of the authorlud 

amount paid la. For inrtaaw, under that IlltoPpretLe 

tlon, a aorporathn oould havb 10o,OOO rhamr or emmea pald La at the rate of lt@ per rbm, and aould 

kla~010,000 r&sMr ofpreferr6uvehi?nl~l8harepaM 

in at ~24,000.00 r sham, then the aorjm~atlon vould 

have paid In ltr r 25,000&O, would have 11,000 of it8 

20,000 aha~~r pafd IIX, and yet It vould have an auth0mti +a4,000,000.00 pm0md 8t06k. obv1~4, 

th lr 3.8 a u l tPamb OILIb, drrroa8 th oe8.%8 uw nrbmlttlng 18 not bxtrbme, but in order ts avoid the 

porrlbfllt~ of ruoh an bxtrow OUT, thir Imaetmut 

haa fntupr8todtha 8tstut~8toxwquf~* thatatleut 

10~afew&alaar of rtoakmwtk paid In. 

%b Yould appreolato an opln.wl frar pur Iwpuemeat U to WhbthW 8UbdfVf8iOX~ d of ArtiOh 15% Fequfror that at learnt lo$ 0s thb numbbr es eha~08 or 

.a& elur of rtook be rubaorlbod a& g&d tt 

of faaerperatlon, ocv?Wlw~ themqulmmua 

t$&l 

l tatutb mmotbjhavlilglO#ofthetotalnl&or of 

ahmu of all alure 8ubrea'lbd and paId.’ 

&wele 1538d of the AOVl8ul 019il at?&uter o? %exw, 

8bt8 Out e&rtn POqUkPO~tD l’8btiVb t0 thb i88- Of 8h8F.8 

Of l tWk Of BO gu, Va lW. m tb . @hk WflUP@ O@ P Od t0 bo 

mad. to th@ sWPbtU7 or Hate by the lnooPpoPatoPs, 011' the 

dlreotor8 0r the owporatlon l.n thb otent of an uendmut to 

UI bd8tflhg 6hUtOr, 18 lUbdlVf@fOA (d) thbP.Of lfhiob. mVid.81 

“(a) The nllmbeF or 8haro8 vlthallt aomfllal OF 

pa~value 8ubrerlbedand theaatw~loawiberatUn 

rbOblV*d w thm O~Ol'atiO23 fOP @IlOb 8hUWUj urb 

upon reorivln8 ruuh eertitlaats it &all k t& duty 

0s th6 &omtary of atata, on pfbywnt of office f-8 

and frudlrotudw, to file uadr86ordthm &Wtev, or awndmaat tbnmeof, of rwh otbrporatlon and 
t0 ~fV4 hi.8 Obl’tifittbt4 BhOWi~ the F4COPd th.tWof, provided, howevbr, the rto&i?Cld4r8 of any 

CO~OlWtiCll 8SIthQdS~ th4 iSRUlE Of 8h8FbB Of 

it8 atoak vithbut naalnrJ. OP par V&IAI shall be 

rqulrad, In god faith, &a 8ubrcriba and pay fop 

at hi%& ten per abnt of ths authorized 8hWW t0 

ba fa8tt4d vithout nominal or prr v82aw kfon erld 

~srporatitsa 8h411 b4 tthartend or hav4 it8 4haFter 

mended 80 80 to euthorire tLu f~8uanm of 8buwb 

vlthuut par or nomImi value; gwooldod furthor 

that In aa bvent the 8mmit 80 paid 8hsll k loa8 

than $25,000.00." 

%m l dvfa te h a t 

oorpor a tl1aa 8 4 8 fdllOV81 

pU Vtiu4 Bt4Ck dlvlded irrfo 

&U’Oil Of 03.484 8. (2) 1,000 &BP48 Of Ba30. 

*illlO. The fl.lOOt & 3OF tltOl h tlYí8 0 ~Ok líOd l VdAW ?$ h & ~~~ 

l h8r4 oaths olm84A pxmfsmbd, $l.OOperahw@ an the Oamwm 

aad have plea& tl~b~ue cda the Oh48 B ~~fW@@d. You adrim 

tbrt O& @ WS A Uid B Of th8 P lWfemd l t44k U’b flbtttdar;l. It 

thOZWfU’O’, fOF JW t0 Vt&W th4 OhlB@ b m- 

@ham for the purpou of 

by A~Male 1538f of tbm S 

ft. vould appear, thonfore, that tha 433,180 ahava to 

bo pald in 18 18811 than tba (10) pm oent of the neaema~~lf dseland value of all the no psr value 8bw44. 

o u l ta t4 th a tthatbozmqw b forth0 faeorpontom wntoad that 44U8. th# amWIlt paid Ill i@ 8tllU thW +?5,000, @Id 

booaumo mom than tea per Muit of the total authwlssd ntanbor of " 

~bawa, treating *I1 the 8hW48 the Umb, ha8 bemk paid in . . . 

that the 4tatUt4 h8 bsO!I aorppllod With. w9 Ut&tOt 844 UpOtI Vhat 

thoory&llthe 8hu-48 oanbetnoto4tho MPI th4 doalasrd 

ealw of the &weferrud l xwkmutba $lW.aO PWrhrreVhllo thet 

O? th4 QODlYIP l tO6k 18 bUt $l.% 
maa Logiolatur0 f.n thb uu of tha latquago * 

l tO& hOldW. 8 . . . oh8li ~SS rbqulred, in 43006 faith, t; I%- 

rorfbe and pay for at lea8t ton per sent of’ the authorized 

8bre8 to be Lorued vithout nominal or par value . . . .* might 

have a8 appropriately dimaland that at least tern per sent o? the 

dealand ~aluo uot bb paid in. us b4114vr tmt tha l4glolatun, 

In the paooqe of suob Article 1538b, lntendbd to and did roqulro 

tha payment of a titdmm of ten p4r Gent of the deolamd vtiub 

Of th0 Oh4Z’48 Vfth thb fUl’th4P pPQVf80 th8t A0 Ow vould be 

permItted to Or@lBfl!b Uld i88ur, 8hIlXW8 Of A0 &WX’ VdW With L 

prid in oapital of leas t&m 425,000. Such hao Lq been tb 

intbrprotatlon of tho statute m the various Swrotar#es of Strte. 

We hold, thwofere, th8t a lIlamum a? ten per coat ox 

0ad.t dAO8 of otook to bo 188U8d mot bo mf.d fli, tl'4ating tiM 

p nfund l to6k, divided iato 4kOB A mad &.a88 8, ao Oa# ahO@. 

Youra v4q tml4 

,ATMllfEXATTORNEY GENEZ'& 

AU1 ata& 

LAtoj