OFFICEOFTHEATTORNEY GENERALOFTEXAS 

AUSTIN 

GROVER SELLERS 

ArrORNEY GINERAI. 

,' 

Cionorable Claubr X8baU 

Yeoretary of stat* 

.durtin, TIxa$ 

Des? Sir, opinion #or O-6944 

I 

l 

8 

Your rupurrt for our above quertion 

rssdr a8 f0LLmr1 

sentloned oors 0rfi00 ~8ing 

one 0r rubdirior a& 'kwr iwind CirU statuter, 1925.4 
‘on iioYambor 6, 19a5, 10 won present.6 with 8 

pr0posod SmMdmMt to 2l.m ohmtor tagothot -01th 8 

prop err uing r o e l d u prop08d rupport* 8frid8rit. 

The propor amdlaan~ t0 the ohcrtrr ohM+$ed tho w 

of the oawporstiOn, iaorrsso4 it8 orpita rtook Irma 

350,000.00 t5 ~75,000.00, M4 qlro propored ta 0-8 

itr purpo8b olsur* to mad 88 im ~s$ewicw ia sbot.&%a 

34 of &tie18 1302 oi tho Tour imvir4 ClrU Btdtutoa, 

1925. 

689 

rtatir aopier of both tho of 

~O~~~R~OJMU phfmFad, ohrrtor of rwh 

oorpp*ng #ml the propordi 8m ) of rubh ehsrt8r. 

-On IJovembw 10, 1943, 4 rrturaod tao propnd ursnbnun* t4a the rttoraeyr for l uah 80 M tNn l dtia ithan a & 

nur~ $tbAtbrn 

the ohrtor of 

tho Oorpor8tlcw rlterty &tr purp58O 8l*u8*. 

"081 EaoteaiBbr 15 1961, ttu ~attorobyr for l~bh oarporatiori keturnod iho ropoud ammdmbat oont0adin6 

th6t lw MN ls wrsr !a auf LnterpntutiQn of tho rp1314 to tho lnnrknt p?opowd 

So on01080 herewith in t&i8 oomwotian 

photQrt&o aopier or thoM two lottorr 8tor088ia. 

*?14880, thmdon, la thr preoifsr, adtin um 

"1. shotid th0 ssontsry of strto rii8 thb 

instant prQpowd aJuaQunt?* 

Tho original par OIO olrum oi 8aLb ehaztor ia Bet out in 

your regyort urd oont~ & 8 ths word8 OS ArtlelO 1302, Yubdiririoa 

710, Vernon*8 Annotrtrd Girl1 Statutor. The &wrpow olaum ol 

the proporrb 8msnbrarnt 0r 8014 ohartw whfeh 0ental.m tho *orb8 

.= 

2 of Art. 1302, YuBdlt. 34, M8d8 88 fOdOW8, 

"The purp~81 tOr whioh it i8 rOZ?Wd 18 to tMMaot any msntiroturia~ or mill 

9 

bushier8 rn4 tD 

oh880 an& sell goo48, weueb ui msrohsnd t u wed p” or 

ruoh bwinO88~ 8s 8uthOrisOd br SUMilt8iOt1 % Of 

artiolq 1302 of thb Teur aetlood Cltil BhtuSer,1925.w 

Art. 1)y is ia part 88 fO~81 

*Any pritotr aorporrtion OripixlzOd Of faoorpemwd 

for UlF ~QO80 mMt~onod iA this tiuo JMy ruarrd or 

ohrngo its ehrrtar or 8ot oi taeorpontion br filW, 

l uthountioeed in tha wiie aaaner 88 tha original ohmt0r, 8u0h 8midmurrtr or ob8~1808 with the seoont-y oi 

stat,. + * * HO urrsnbimt 02 ohango tiolatite OS ths 
Hon. Claude IsbOll, ~8~0 3 

CORatitUtiO5 Or hkW8 Of this ,tStO Or SW pZ’OVi81fNA Of this tit10 Or which $0 Oban&OS the orI~~#l 

OurpoSe Or ruoh OOrpQFrtfOa !S to prevent tb luQUtilxl thrnor, Sh8U bs or any rorm BP l fr e0ttw 

b SkUitir SitU8tiOn W88 iATOlVe6 iI& tho 06ir Of ~Oh58fO~ 

l t al I. TOWnBOnd, 8oorotarr of 8t8to , 124 9. ul* kl7, whioh had 

t0 b0 with SD Od&iSl Sp~~I88tIO5 fO? 8 WfIt Of nuudunu8 fIl44 

in the 8opremS Court to oaaprl the 8oorat8rp of SUto to file 8 

ohmtar of bearpontioa prepwb& 8nb rubdttod under the aaim 

SUbdiliSiOJh Of tho Statute 88 that h8r8 Un&Or WlXi8i(lOMtiOIl, 

Snd WhiQh t&O 8bUMtSrr Of 8kk ~fU8.d to f&lb 58 tk. @'OURd 

th8t it r)S rOr th8 rOriE#tiOn Qf 8 OOrQQutiO5 rOr tW0 p~rp0#08. 

Thr SUprrrPr CQUPt upheld th SOtiW Of the YeOUtSr~ Or Stat8 

on that gxoun4l, as wall 88 on thb g~und that It did not oloarlJ 

SflOify the ~UPp080 rOr which the WrpontlQa W88 oreatotl. In 

SO hQldill&, th0 00-t laid down th. rOuQWiJb$ tiO# Oi 1SW: 

*It h t&O OOJItentiO&3 Oi t&O ~lStOr8 ttit tb# 

mention Ot both MnUfaotWiA~ Snd JIiAi~46 iXi MO 8th. 

dl~i#iOIl Or the StrtUtO SUthOri~@S tho fOM%StiO5 Of 

oorpor8tIonr for both purpo#e@ Without anr lisitation, rhloh oOAtentiO5 IS haed UpOA arrtkI5 axpre*8loa* in tho opinion or this oourt in Ramsoy 

va Tab& 95 Tax. 62b, 69 9. W. 133, 93 aol st, 

ROE. 6'?). 0~ t&o other hand, n8poodent 005tO5dS 

that mMtiisotUring @Ed mining We biBtim bUSin0*m*, the trea8aotIon or whioh by 050 o0rp0r8tIon 

18 DOt 8uthorimd by tho QXQViSizXk rOtOrmd t0 permitting en lnoorporation for the ano 'or' thr othor. 

*tie 40 not ruliy SgFOO with rlthor ooatontion. 

It a&i86 be romoaberod, 88 W88 &WintId Out in 38mMg 

1. Tad, thst Mother protirion mpuinr that tho 

ohartar S-t0 'thb ~080’ Or th0 ilMOr~I'8tiOD. 

It 18 a180 to b. nOk4 th@t that for whioh u1 inoorporbfion $8 SuthOriSOd by Subdivision 14 f8 thb 

tran#8stiM Of '8 bU8inO88' - JlOt Of tlW0 Or 89;n 

bU8iaO8848. sithor ailifns or mUlUf@OtWi 

3 

f-r br 

l b USiM 88 by it@OLi. Tho tW0 -Jr b* WhO di#- 

ti.rlot frQm sna UIUo18tsd to l @Oh other, A ehsrtir 

~Ut&Oridll(l both without rO#triOtiOn WQtid OWIt4in 

8 S~t~8~t, ILOt Of t&O pUrpOS*, but Or the QUr- 

~SoS, rnd would rmpour the 00rporrtlon t0 trum 

sot, sot 8 bU8iAO88, but bwinO@rOS. In~&I008 Or 
Hon. Claude IabeAl, p&j. b 

thia or0 a bu0im00 0r rinb8 r0r gold ma mothor 

or i00Aur00taAg aottan0, 0r 0hhg r0r 0001 ~a or. " 

aamZaoturl.ng l hooa. 3~~0rdi~00 or tbr w 0r 

8ltsM a tivlo a ~& uq la a l ub$lrialon 4, we th ink </ í 

tam oharrotrr or bha statutory proriaia~~a i* l UO%I 

aa to l rolude the oonatruotioa that thr traaaaotion 

0r two di0th0t bu0iA000g:or ain* 0na 800Avi00tuing 

are bon prorldau rcr. on thr othar hand, them may 

ba a bruinoar 0bn,i*tiA& or both ~a0Aaf0etuHAg 0nd 

sibLag, ia rhioh tha 0 osatioar an a0 rolate6 to 

l arh olhar a8 ta mat P tute 8n ontinty, Tb 

produotr or the slae say be roU ln their oradb 

BtOtO 01 lrq bb UIU&rOOtUrd iat0 &O&Q arrWAt l rtiofOa, and them say ba r6ld or aclrotrb tb thdr 

r*ribua we** Thla ad&t Joatly bo traatod a8 thlr 

tranuotioe. or a MAui8OtUhQ aA ald.Ae buaheaa, 

U& 00u rithin the b~@Ugo 02 t&b rbatotb, #e do 

not thialt that the ua4 *Or’ was 

~tandad~to pnteat an ror t&t or 

any Other one bualneaa, although it ronaiat partly 

of a&Ah& aad partly or llbaAuraaMa&. 

I+ c 4 

%Vir lftWit~ l O itNOr OrOtiOA i0 l liOo#d by thfr 

8ubairlrion ror any un i ertrkin(t that 00~10 with5.n 

the aeurhq or all or l ithar or thoao worda. St 

6008 not rollor that l rwral und@rtokinga nhioh in 

thafr naturea ar;ouy~~d bfatfaet a&ay ba inoh&b as on., ‘a bualnrar’ may 

prepr3.y be inoor&ato6 88 i aanuiaoturln& an6 

miniA bUOi~Or0, but tW0 b~OinO@Ud, OAO Or MUMrarturiry aad tk0 othor 0r dying, cunaot w ~40 

Ona beeOWe tha #tOtUt. dO4b Aot 00 $4Vid~. nLi 

l.~~alatir. intention that the bualaaaa rhould be 

a ualt ia rurthw ahown bl the foot bhat in aubtiriaioa 4 thora 18 80 (Moral OuthOrit~ for the 

-Maa and wle of -da, but odq an l utheri 

rot th p~rrakb80 ana 00h br th000 *-a ror au x 

burla..& 

*A abarkr 5wt l pdry the purpose r0r *h&0& 

the oorpontloa ir to be mlzI1. Tide rkoU6 be 

dew rlth aurriolrnt oloarcpraa to Onable the 

soeratary or stat0 to WI that the purpoa4 spoolrid la OPI pretl&oi for br the astute, an6 to 

do r lno r ith l OM rortalaty tha l aopa 0r ul* burla. 

or urrdartau to @a parmu&. TM r&rtor toadend 

in this oaoa lo DO gmral and lndeiialte in it8 
692 . 

tfoa. Claude IaboJ.l, pa&a 5 

1urg~Og0 that whils it Lnigat apply to oue buainaaq,- 

l uab 08 w haro nwntloned, oonaiatiiq or both manpI 

raoturing and ml.nia&, with tho p ur o h aaa l nQ m&q'or 

6.ooda; l to ., ua*d r0r lt, it nrlght 0100 bo to in to 

l uthoriaa the trrna8otion of two buaiaeaaea, ZL or 

nrouraoturl.njt an& anothor 0r ID&I*, aith thg rurther 

pcnnr 02 purikJi4aa aad 0010 iaoilont to l aoh. And It 

l ppaarr to ba the par 00 0r tha xvlatora to uoa tb 

uEartrr ior the oarsy G 

diat~ot buabaa~oa. 

05 or what w rrgara 00 two 

we MY look to thla aa ILluomw0’0r uo oqpoiti40 r0r use or that whi0h it 

is mw$ 80 ham the roapoadont ril0, although *O 

do OOt think that quoatlona 18 to u&t my be dona 

under a oharter ordinarily aria0 whmt 19 ir propond 

WI hOlO OA0 iiibd. Xt ia jwepor and irportaat to aeo 

that the purpon or a ohartrr f0 80 l xppnasoa aa to 

oarry out thm latantiau et tha La&alatuxu ta making 

that ngulmaeat; ror it la by l o o a p lla a co rich it 

that the publlo, 80 wall 68 thoao a~~ia1ly fstwe8kd 

~~n&er$rationa, an to bo prOt6otd a~aLnat the l aawp 

ra aot greuitod. 

tlou tha r 

It apparr rroa &ho potltho relator0 rho or0 also the propoaod dmporatora hav* hwatofon l o to 6 00 pertn*rr ia siining 

ror oif gas and water, and have mnufaotumd their 

tnua tee io and quipMAt and Qoria*a wed i& that 

buainoaa, and how bmo~tod urd rooeirrd patent8 OA 

l MO rbioh w8ru am. Trmg horo boo n l blo to maauraoturs mra of thoao than they ham neodeb ia dbln(( 

their oya uork, and Herr bson mgr$Od in ral.Liag them, 

aad tho aOncsrOOtUd.ng bualaoaa whisk thy wish to inoorporak Ia that of soking thaw to&a, Qorleoa, ate., 

ror nlo to othara. Suoh manuraoturing haa horatororo 

beoa a part or the bualnrao rhloh, aa ln6~ridu818, ther 

had a right to oonduot, but it by no amona fQAAOW0 that 

it with all 0100 that 10 proj70006 ror the oorpontlon ia 

o nly 01 1b w0 iaaaa 0r O& A* 0nQ a nnur 6o tur irq l uoh a0 

ona oorpontlarr nnr rollor. Xt amaa plain thrt tha 

buainoaa or aanuraoturiag tor bale tool@, l to., ior 

rnlslng Ia aa diatlnot rron tao bua~raa et 5inl.q aa 

tha buainaaa 0r mnufaeturlng ror ulr iOrOkhA6 &q&emata would ba iror ramwig. In order to hold that 

the l t4tuto allmf* Uxa inoor 

go 

rat&au for tw awh 

pugpoama, uo should hava to old thot it l uthorllraa 

tb iaoorpmatloa or ma oonpany ror diatlnot buainoaooa or oranuf*oturisq end minti, RhiOh, a0 *o Envm 

already raid, la not true. And, a0 the ohUtor 

offor aaa bo intarpreted a0 aeaniry ad la l.RtOndOd 
HOA. Cla~~&a Iabbll, gta~.r 6

to man that it authorlaaa thr yurault of both 

buainraara m think tha respondent &ad tha right .’ 

uador t&r tow to roruar to rii0 it until thr bwbt 

am to it8 a o o Q8 l hould be 

l tatomat 0r the purpoao.* 

roymod by a more apoepo 

#f ’ 

xi -ah 0r th8 growhknt rOrth in tho above oplnlon ror 

rduriiu to rllo aaid ohmtar #PI l urriolont uaddr thr root8 

oi that oaeo w&ore M ori 

bo at2sriairnt hare, l apoo f al4 Foal whartar moo intolvad, they would tho rirat ground thmroot, *in00 

M MM&O~ @hOrtW la hero inrolrod. The orl&aal ohrtar or 

tho Brov~rrllLa Shi Buil6ifq Corporation hating authorlsod a 

bualmar ruoh aa b UL din&, oonatruot~ and m 

l hlpo aa4 VaaHla, tegathor with the other rot r 

irlag beat8 

rltlo8 thanin 

doaorlbed,. ama rotid noroaaarlly oonotituto the uanuiaoturlaf$ 

bualmoaa that ueuld br Oarrlod on under the aaondrd ohartor, 

aad aald amaufaoturod 8rtiolrr 0fka ukrlala, dooka Ma l p 

purtoa~oeo uwd in oQAAootloA thamlth would bo tha gooda, 

warm d aarohandl~ to bo puokoood aad aold oadsr the 

asended o hartar. But uo an uaablo to ose rhrro auoh ioo~ufaaturln& bwboO8 M4 tha puroha&e and ml0 Or OWh yroduota, 

oouBd ba 00 roladto a ainla& bualmaa~tltho pwObr0~ and 

aalm 0r it8 produotr 0, to ooaotltuto 8n OAtirdy wader tao 

ruler of lar laid darn la the aboro WM. yw Ohio roaaon# 

therrron, it is ouropiaioathatpour gluatian ahduak, 

On6 It lr, anmorad In the aogatira, l e wall l loo ior the 

furttw ream that the purpoao ah180 of l wh urn&d 

oaarter doa0 not olaarly 8pOOlry the pwpsar Or thr oorporati0n artor tba rikiiu 0r a4314 afaondPtl)nt. 

Your0 vsry truIyr