Ron. M. B. Morgan, Commissioner 

Bureau of Labor Statistics~ 

Austin, Texas Opini,on No. V-613. 

Re : Legality of chartering 

‘a corporation for the 

purpose of operating an 

employment agency. 

Dear Mr. Morgan: 

You desire to know if’ the statutes of this 

State authorize the creation of corporations for the 

purpose of acting as an employment or labor agency. 

The statutes regulating employment or labor 

agencies define such an a,gency as “any person in this 

Stste who for a fee of~fers or attempts to procure or 

procures employment for employees, or without a fee offers or attempts to procure or procures employment for 

common laborers or agricultural workers, or any person 

who for a fee offers or attempts to procure or procures 

employees for employers, or without a fee offers or attempts to procure or procures common laborers or agricultural workers for employers, or any person, regardless of whether a fee is received or due, offers or attempts to supply or supplies the services of common or 

agricultural workers to any person.” V. C. S., Art. 

5221a-4, Sec. 1, subdivision e. 

Our present Constitution forbids the creation 

of corporations “except by general laws” and directs the 

Legislature to enact ngeneral laws. . . for the creation 

of private corporations.” Constitution, Art. XII, Sets.. 

1, 2. Thus, corporations can be organized only for the 

purposes specifically prescribed by general law. It is 

“The policy of our law to limit the right of a corporation to the specific purposes authorized by statute.” 

Staacke v. Routledge, 175 S, U.. 444, 447, affirmed 111 

Tex. 489, 241 S. W. 994. 

“A charter must specify the purpose for which 

the corporation is to be created. This should be done 
Hon. M. B . Morgan, Page 2, V-613. 

with sufficient olearness to enable the Secretary of 

State to see that the purpose specified is one provided for by the statute.” Joknstcn v. Townsend, 103 

Tex. 122, 124 $. W. 417. Corporatirms I 10 Tex. Juris.. 

622, sea. 31. 

Now the Texas Employment and Labor Agency 

Law might be broad enough to empower the Comtxisslenrr 

of the Burrau of Labor Statistics to license a corperation acting as an employmant agency if co rporetions 

were authorized in Texas to so act, which ins a question 

we do not decide. But a most careful and detailed study 

of our statutes fails to aisolose any authority in the 

Secretary of State to issue a acrporrtion charter for 

such purpose. In the absenoe of such an authority the 

Secretary of State is not authorized to issue such a 

charter. Ramsey v. TM, 95 Tex, 614, 69 S. W. 133,% 93 

Am. St. Rep. 875; Empire Mills v. Alston Grocery Co., 

15 S. W. 200, 505, 12 L.RbA. 366. And, in order for a 

corporation to be eligible to an employment and labor 

agency license “it must be authorized by its charter,, 

to conduct the business for which a license is sought.” 

Licenses, 53 U.J.S. 624, 0 33, n. 15. 

A corporation oannot be chartered, under 

the present Texas, law, for the purpose of operating an employment or labor agency. 

Yours very truly, 

ATTORNFX GENBRAL OF TBXAS 

&gL?&dL-cJ . Rv 4 

David Wuntch 

Assistant 

DW: rt: jmc 

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