OFFICE OF THE AlTORNEY GENERAL OF T’EXAS AUSTIN

You hsvs 1~8 the eonstruotion VLed Civil statuts8 iJleuraAnae

0oERpRn1atl. Opinion Ho 1 ?e: c0fiaOiida42370r in ana*

v a + aoqmnies under t. 400SO&

'I 3.C.S. 19 nubbnrilitto rel questions Fotolv0r m Tax 0 0 1*8 0 0&0lidttti08 e8 04 'an 5041 Vemoa*r I?.- 0r , 0r

alder Art*. 5040 hutare MdOF th. t neau8arg to *mend h it Bmhllo~ 6apltal oboak 5erger.

. . . and req,uire BfmRta aB repremz%ti.Rng the

eioreinsuranira ocmpmla8 dolnd a rinsof4wNah are and hvo Been subrtanticontrolling sto8kholdare and rrhiohhave as.aotual.LJaompatlng with @ash other, hamphave b4.n~ pradoualy ortpuxlasQ under 1116Rtete, atapunite or ocarolidate upon mapliaooe with the terns,or thir law. Suoh aonsol~dation shall not be m9otmted in riolatiorior the anti-trwt 

### and *ntl-monopoly lawn or 

### this State. Berore 

### auy rooh aousolld8tian shall take plaar Elm 

### psrtlosholding artleas8 two-thirda 

### of the capital **ntook** of aaeb of the oeeganlosh. 0. P. Lookhert, pa%s 2

shell vats in Zevor thereor 

### at e 

### separete 

### aeetlnng or the etookholdere of eaah aoapaay aalled ror 

### euah purpoee. 

### Suah **neatln$ map** **bs salled**  **in** bhe **smnaer provided**  in 

### the 

### by-lawa of the Faepestlve 0os;malee OF 

### theIawe ondor tile& suab ooqmnlee are o~izeaiaed,14 oalltig **eprahl** 

### awtijpig~ 

## or etookhOldeF8, 

### esoe# that 

### eaoh ntoakboldor ehall~,.be notlried by aall. of the time end plaae and obfeot or 8wh 8+watg.*

.b.rtr 5041 **pravi4art**
%%ch kapaaiee ptopoeiag to eoaeolldste aey 

## unite their aer;ateOS eap pert thersor and beoole inoorpmeted in ona body m&r 

### th* nupe or 

### my OII,OFaolpaof a& oarpeniar cc’ &&a~ eny otthas 

### aam4 thetmay bo ailq!j UwJb Mb ieale

rteek la auoi% oorpQFstital



### te tno l



### tQokhe OFB 

### OS eeoh 

### of the ooqariieeao.neelldatod, the eotwl value or whioh 8Doek fa t&a am ocwpuyl ehall beer the came pro

### portionto the 

### eotual valw et. b&%atoak eurrwSueU by l 

### uoh 

## l tooklwl4~r r~Qar:og maah + We entlti Beebe ot the mapany IPI

0

““x% asw ooqmny, rhloh ::,,8ese tb the MtiFe ae~ata of the aa l he21 

### be ago@4 qmn **by** the **beard** or 

### dlreatora or 088h”~o holder8 (holding tw6- 1 gtsorldaQl theti

### l eid hooks* the **rtook) rmr~**  **et** the 

### muting pwwiue4 

## r0r.ta,thi,weaodiry 

## l rtiale,

d*lo@a tha 

### vahetlon ,ci aemte 

### t&a samnitteaot Hieakhaldon appointedbr theirreageattrebmrdr or dlreotore; 8r

*2. orpr

mqmaq aey teki owir all the aeeete 

### of the other aa%pas@e ptopoefm to oonmlldrta 

### an4 ieme 6tO6k to theirrtiookbO’ld8Fs iS th* ~FOp6Stt66 tht th. valuq,or 06el~ esoek b6we ta bha eatire value 09 the ad&i 

### of ~$hc.a++qq 6n vi&oh 

### they asa rtoakkol~m?@, aad for thijs 

### gmrpcrrre the 

### aapikl **etoak** 

### ei 6uoh pureslrrlng emmy trrybe inoreeeed, te now **OF** mey b* herearter pro**vld.4 by**  **l.ew.**

“3:.In ~880 or awealfdatioe M~V the fleet 8 t1o11 pfovided in the rlret eubdivfeion hereof, the Weeies BBer P ehsll upon proof tarnished of ooqlteeoe with the tenan hereof’

### WXI

beilM: l 

### tlefied thet tba pFWmed 

### oan*olidetlc#l is ror the brrt interseta of Ohs llay holdem et the reepotivo 06?~pmlem and MLde iii ~@8e)rdt8nOt9 With leW&RU 

### r

e; ~~~~~~~~h~Q~~~~~ P%. nnd delltar a 

### aharter CO *aOh LL@W O~puY*#&. 0. P. 

### xmkhart, pa@ 3



### "4. SuQh ewwolidatfao shall uork **a df8uolution**  **of** the oompamie~ absorbd, but shall in 80 wise prrjudiaa the 

### right of aZig 4xadftor 

### of azip

6uoh oorporatian **to har4**  

### pap want O? hia **debt** out **ot** tha assets end property thwsof, nor 

### shall w 

### oreditorbe thereby daprived of, nor prajudiOti iA .A$'Si&ht Of 80tkOn than peAfling @I'**rxhtin& 01**  whiah msy thsreaftm aslm a@Autt said oo~pany, and mr- +icro or S~QIW Qf the proper **offi44rs** 

### or a&eats 

### of ssah new tarr4orglrnlldd aorporatlon aball be doam saitioiant 

### aa to all or any of aaah **04qmni4s.**

"5, AlI pOli410a of insuraaoa oatstaadlsg agsla8t all s&oh aompaaies rhali by raamn of rueh aonselidatitwz 

### br arsumsd by 

### ~tlha rcrorgluriad

ronpaty, 

### aaQ they *hall carry oat 

### the tesiw Of suoh pdlioy on th4 r t ot the lnsuror end **be** astitlad 60 all the rlglhta and 

### pr rllagaa thsmof 

### and the **;;;;m48** 8oo~letiniF: 

### on aaah 

### polfogprior to sa0k aon8ollda- .I
It till'ba &ba&xrad that the firat option pro+lQe& **br Art.**  

### 504l pro~ldas teea 

### n0vA80116e~tloA* and oontem letas

zp thr 

### orgpmlaation

of a 

### naw aorposn$lpn to 

### take over the baa sass and urotr or the croanolidatlng, obspaalas; nbilr the sa0oad O~%OA aontsr 

### fat48 a 

### *m4rg4rP", with one vf'tha eorporatioo6 eontlaabg it8 usfstume, but 

## l eqd.rlng Eke a'68etsOS tha 

### othesrri
**11n the**  0880 **qf** the "ooaablLidntfOn*,110 e A4B Of vkdta- 

### the 

### olmrtorof either of the corpwatians 18 iarolva ) tatas 

### oont4mplatoa thr issuanos ol a sew 

### abrter 60 a 31s~ mm-*. 'PhO0Epikl. Rt?UOtUSO Of th0 “A4W 0mw” Il.86ZtOt4XO.d tee aapltal struotwe or aithar of **t&s** aonsolldstina;BOQpU3lasf all that 10 reqalred Is .+&at the aapital steak of thr4aw 0oapaAy~ be distributed among the stoakholdar8 of the 0QA8QliQatkrg 8014 orstlons in sush ammaw thr6t*the actual vaLlaO*02 the sto0k L the mw 

### oosporatlon gdtan to eaah storkheldw "shall **bw** tha saaa proportion to tim **aotual** velua of the steak swrrs&itra4* **by** sa6h 8tookbolPer *an tba~antirs assots of tha OOmpaAY 

### aUSS*nd~iag **aash atook**  **beara to**  **thn aatlrs**  **asaat&+f the**  

### A- **OwQW.*** **i..,**m. 0l.P. Lsakharti,page 1,

IA wbioh ther 

### ire stookhoL40rsa, ths 

### tnormso I@ not man5atvryg ,the,0apital #took may s&saia the mm, baa say be rsa **Aetgl(((;** the st@akholdors **ai tbc**  **abaorblne and**  ths ebsor pesti-@ Ii ad,ampany. **The 8eOanb**  **branch Of**  **pow** question ingulres whsthar upon 

### *oonrollQatSon*, or apen 

### *aorger”**with** 

### SA **8ttsnCant** larseas* **IA** tha **Oapita ’** **l #tOOk**  **Of the**  **8~WIving oo&qaAy**  **for tha**  pltrpoae of 

### l ff$0tiAg

M **.ppVStiO+Mt Plnong**  tha #tookholders Of t&e respaet~M~@oqaaio# of **lts&ock,** partlotiar **assets** as& **ba** deai@at& aa 

### rqpreaaatlng the aagltsl steel la the woonsolIUatadw 0-w **0~ the**  **Qple hand,**  **et as**  **reproseating the**  **Increa8o In**  cupit **swok** la the %ar@ax* on the o6har.

XA tlilr 0i3nneotlon, toa asu 

### oonemaed with the 

### l tseot 

### ffh/. 4720 upon oonsolldatioas OFaargars undar Art. 5040 

### an&

l hrti. 4720 prorld*sr

Vihon the 

### fkst reotlag of the 8toakholdscs shall bm hali3end tha ofriears a? tha OoapaJlyela&r9* the pm#i&wlt 

### or l 

### rerstnryshall 

### notify t&o Comlaslon~r~ arnd he aball 

### thmroupoa lmmdiataly **make,** 

### or oauae to be u&o, at t&s 0x0 pan80 ot the oaapuby, **a** fall and **thorsagh** 

### axamiaatlvn thumb. Xf he rinds t&d all of the 

### erpltel **atoak** 

### of the 

### ooopuiy, awuattn& 

## to not less thm oaa hundred thousaad dollars, hss boon tally p&Q up an& Ss In the ou8to&y e? the nff&sars, aIth8r la oaah ov seoarltlaa of t&s olsss 

### in whloh sash o(*r 

### paalaa ars l



### uthariaad bl this 

### chqtaprbo bweet **or** lsaa tbeIir 

### funds, ho 

### shall ~~QWI **ta** 

### 6wh aoa~paaya aaftifiaate ai author

### ity to 

### traaaast aaoh kind or kLnda ot i~snrranesba&ers~ritbln 

### this stat* **as** sash 0rmm8 glsg BP

### yly tar. WH% as m&y

**be aathor**  Iaad **by** fitaohartaet 

### wbiPh aertir cats shall axpjra #&I t&e last **day** ot Plabroaryaart 

### aitor ths data 31 it8 is#uan~& Before suah **stitiflorte** la Iasned, AQt l45e thaiItw@ OffiO~S of EUOR 

### companyshall 

### emout atd file with ths GosYissiBd~ a sworu eohedule of all the.

### astratr of 

### ~theooqany -b&tad 84 hita

### uponsuth esamfnatlaa , shoriug 

### ths valqa UsraW, EDsa$har wItA s stern 

### ststaaent that the 65a4 

### ere bona ifda, %a wuon<io~ral and urianaumbareapso-party of the oeqaaY gad 

### are rotth the emurats tatat#l in suoh aohdtalo. HO 

### o~~II&@ or fir& aattiffcate or aatbority ohall **bo &ra~bml**  **axeapt l.A**  **a6dordty** 

### hsrmith, **regardleas** 

### ef the **data** 

### 0%iillne 0r 

### tha utialto of inaorporation

### with the Comalralcw6r.*&rer 0. P. Iaekhwt, pets 

### 6

### 8. ?Y. ?ni+ahild Aari88M8