**OFFICE OF**  **THE AlTORNEY**  **GENERAL OF**  **TEXAS y** 

**AUSTIN**

**~gRALDc.**

**MANN A---r** 



### HoaorablsTomL. Beauchqp

sooretery of .stete **Austfn,** Texan
'D8arsir:

out hne

malt'winagrente& oa lw?, end perlitltt4 

### uot or transaot the

agent

## for **the** performawc, 

## dr

heC T Corporation 

### Symtua daily presents to this oitioo through the United 9tates md.8 applications, together rLth al;lacmmpaaylqg pfwr~, of forslgn oorparetfone to **do businms**  **In** the StAta **of TWYUJ.**  **Aoaoarpanying** tha appl,ioations and the **eu~portfapg** papers iea letter 

### fromthe C

### TCorporetlon 6ystaP advising thilr**Honorable** Tom L. Beau&, Page 2



# offioethat 'etthe lnntnaoe and request of the law 

### firm of Doo and Roe of Blank City,
u. S.A., the following papers are presented to your ofrioe.*

*Thewriter isof the opinion that the CT Corporation Syrtem seeks to aonduot thla business under Artlole 13C2, Sootion 49,whiah provides as follower 

### "*For any one or storeor *he rollowing purposes: To aoouatulate**and** lend leoney,purohese, sell and deal in notes, bonds and securities, butwithout banking and dlaoounting privileges; to aot as trustee under any lawful express trust **oodtted** tothem by contract and as agent for the performanoe or any lawful **sot. ’** 

"Artlole lSZ4a

### proridae that oorporati& organized under Seotion 49 ahall be sub&of to oertaln regulations whioh are oontained in Saotlon 1 to 10, lnolu8lvo, oi saidArtiole 1524a. The C T Corporation System has ooak plied wfth all therequirements set forth in saidArtlole.
"This orfioe has bad presented to itan epplloatlon for oharter 

### for a domestie eorporation whioh states that the purpose 

### for whloh saidproposed corporation is formed Is 'toaet ea agent for the perfomanoe of any lawrul act such as to assist **members** of the bar In organization, reorganization, qualirioation and representation of oorporations including notifioatlon service and generally sating ina statutory oepaaity **rot** oorporetfone*. You will riotsthat this isthe ldentloel language used to grant the C T Corporation System Its permit to dobusiness in the State of Texas.
"The following questions present themselves end this Department wiehes to request an opinion fromyou on them:,EonorableTom L. Beeuahemp, Page 3

“(1) Ia the C T Corporation System, under Its purpose olause, authorized to fender the eerx!loesoutlined above?
Y(E) Does thedrawing end filing of appllOatiOAe for ;?crmitst0 do buslnese iATexas OA behalf of rorew OOrpZtItiOAf3,at the instance end requed ofmembers of the **Bar** of forelga etetea,,OOAStitutethepraotice of law?

**“ (3)**  **If you**  **have stated**  that It does oonstltute the praotloe of law, 1s suohpreotloe of lnwunlawful eAd in violation of iirtlale430a **oi** the **Penal** Code **of Texas?** 
“(4) Would this offloe be authorized to grant a ohartcr to a do!xestlcaorporatlon having the ebove referred to Furpose olause?

**w(5) If**  **you** have answered thiitthis offloe would be authorkziedto $raAt a oharter to eald oorporetlon, would it **be** authorized to render the same servloee for attorneys as the C T Corporation System Is now rendering wlthout being inviolation of hrtlole 4SOa of the Penal Code?
“(6) Xould said domektio oorporatlon be authorized to prepare end file applications for perziltsto do **bualnecm** inthe Stat3 orTexas ror’ oorporatlone, and if itwould be 80euthorlzed, would the rendering of said service be invlolatlon of Xrtlole 433~ of the Penal **Code? ”** 
Article 430e of the Penal Code reads es Tallows:

“.5x. 1. It shall be unlawful ‘forany oorporatlon or any person, i&m, orassoolatloA of persons, emept natural persona who em members of the Bar regularly admitted and lioenaed, to praatlce lsw.

Y%C. 2., Zor thepurpose ot this ir6t,the practice of lew is defined as followsr Whoever (a)In a,repreeentntive capeoity appears asaA advoazte or drau,apapcrs, pleadlnge, or doouments,Ronornble Tom I..Beauohamp, Page 4

or

### perSome any act In

### oonneotiol;with prooeed1~s peAdin& or prospeoClve berore a Oourt or e justloe of the peaoe, or a body, board, oommlttee, 00~it1118610~ or.otrloer oonstituted by law end having authority to take evidence in
or settle or determine **oontroveraiea** in the exerclse of the judlolel power of the Steto or subdivision thereoft or, (b)For a oonsideration, rewerd or pecuniary beAeflt, present or antlolpeted, direct, or lodlreot, advises or **oounsels** another as to eimular law, ordraw4 apaper, dooment or instrument affeoting or relating to seoulm right*; or, (0)For P oonslderatlon, reward, or peouniary benefit, present or ontlolpated,dlreot or **indlreot,** does 

### any act lo a regresmtatlve oapsolty ia behalf ofanother tfiAdIAgto .obtainor aeoure. Sor auoh othsr the prevention or the redrew of awrong or'the etioroement 

### or establlshment of a right; or, (d)For a~OOAeid8retiOn,' dlreot or lndlreot.,gives .4Aopinion 48 to the valldlty of the title to real orpersonal property, or (8)ksevoo6tIon. entorees, 400 cures, settles, adjuste,or compromises defauLted, oontroverted or disputed aooouAts, olalms or demands between persona with Aeither ofwhom he la tnprlvity or in the relation of employer end employee in the ordinary **sense;** 1s praotlolng law. Nothing in this section shall be construed toprohibit any **psrsoA,** firm, assoclatlon ok oorporatlon, out or oourt, from EtteAdfIIgto and caring f'orhis or its OWA **buaine:s, olalms**  **or** demands, or the olaim4, demands or traffic business ot saidoorporation or of the indiVidtl31members of said oorporatlons **or aesoaiet~oAs;**  **wzir** from preparing abstraots of title, aertlf:~ing,guaranteeing ,orlcsurlnp-titles toproperty, real or personal, or an intareat therein, ora lien or encumbrunae thsreon, nor shall aAythlng in this section be oonstrued as prohlbItlAg Amy **back** or trust aoqnny wlthout resorting to aourt a&ion from aotlng Zor.lts **oustomsr** In eniorclng, seo@.Ag, settling or eddusting any ltammentioned in subdivision (8)above,Honorable Tom L. Beauohagp, Page S

nor ah,!11anything ln thliesection prohibit any person or a%0ooIation ofpersons from puraulng as a vocation the buainesa of adjusting lnsurame or freight rate olalme; provlded'further that nothing in this **Aot** ahnll prohibit **any** person or assoalatlon ofparsons from appearing **b&ore** any Board, Comlealon orAdmInistrative body in oonneatlon with their voaatlon of adjusting Insuranoe or Jkel vlded.that subdlvlslon (e? t Rate alelms; 

### prohereof shall not prohlblt any ludlvlduel~~~;company,odrporatlon or assoolatlon, owning, operatlug, managing or aontrolling any oolleotlng egomy, oommerolal agenay, or commerolal reporting credit

### agenopwithin**this** State, subjeot to an oooupation tax under Artiolr 7001, Chapter 2, Title 122, Revised Civil Statute% 1925, or Texas, rrom ruxmlshlng report% and oolleotfng, eeourlng, settling, adjustine or aom- .promlslng, out 0r oourt, defaulted, controverted
or disputed aooounts or olalxw growing **out ot**  **oontraotual** relations, provlded,that said lndliiaual, aompany, aorporatlon, or aseooletlon,oom- @lies with the above etatute; and provided fur-. ther that nothing in this Aot shall be ooestrued asprohibiting real estate agents from aolleatlng rent% for their employer%; provided that nothing herein shall prevent ,NotarieaPublio ;~yorawIng oonveyanaea ror orwithout aompef-

.
"SEC. 3. It shall be unlawful for any oorporatlon to practloe law as derlned by thla **Aot** or to appear as an attorney ror a@ person other than ltselr in any 

### oourt, in thie State, 

### orbefore any judicial body or any board or 

### oomiaisslon of the state oP..Texa%; or hold ltselr **out to**  the pub331 or advertise a% **being** entitled to praotlas law; and no oorporatlon shall prepare oorporate oharters or amendment% thereto, or other legal doouments no$ relating to Its authorized buslnes%, or draw wills; or-hold kt%elf out ln anymanner dlreotly or lndlreatly asbekg %ntItled tp do eny or the foregolns aota; provided, that the foregoing shall not prevent a oorporation, person or assoolatlon of person% rromHonorable Tom L. Beauohamp, Page 6

8mpLoyfng an attorney or other ag%nt or representative Inregard to its o%,naffair% Inany hearing or Investlgatlon berore any admlnl%- **tratlve** orrlolal orbody.
"Provided, further, that the above prwlslons of tbls Aot shall notbe oonstrued to prohibit a person or corporation aotlng ina tlduclarf capaolty from transacting the neoe%- aary olerloal busineea Inoldental to the routine or usual administration of estate%,. trust%, guardianships, or Other slmllar ilduclary capaoltles, or riling aooount9, preparing and tlllng tax returns of every nature, and other such admlnletrative'acta, nor from partlolpatlng through his or Its own agent or attorney, in oooperatlon with testator's **attorne-7,** In the preparation ot teatator's will, where no oompeneatlon 1s oharged for suoh servlae and no aompensatlcn whatever is charged 

### or reoelved, other than the ueual commission allowed by the aourt ror admIni%- terlng the estate or trust, or provided 

### for by the lnetrument oreatlng the trust or other rldualary relationship.

WAnd provided, further, that nothing hereIn shall prohibit any Insurance company from causing to be defended, orproseauted, or from offering to aause to be defended, through lawyers of Its own seleotlon, ths lnsureds or assureds in polloiea issued or to be issuedby It, lo aooordanoe with the terms of suoh pollcIes;l and:shall not prohibit one suoh lloensed attorney at law rrom aotlng ror several **como5** c;:rrlersor,other oorporatlone and a%%oalatlone
or any of It% subsidiaries pursuant to arsangement between eald oorporatlons or assoolations.

"SEC. 4. It ahall be unlawful for any attorney at law io share any fee or ie%a earned
or received by him for legal servloea with any person or firm, not a licensed attorney or attorneys, orwith any asaooIatIon or oorporatlon.Honorable 

### TomL. Beauchamp, Page 7

"SEC. 5. The oounty attorney and/or Dletrlot Attorney and/or Crlmlnal Dlstrlat **At-.** torney of any oount? In Texas shall 

### on his ow5 Initlatlve or upon the applloation of a5y Bar Assoalation In~the State of Texas bring mob aotlon inthe name of the State of Texas inthe proper aourt to enjoin a5y suah person, oorporatlon, or assooIatlon or persons rrom vlolatlng any of the provisions of this Aot, and It %hell b% the duty of the aountg attorney% 

### and/or Dlstrlot Attorney and/or Criminal Dlstrlat **At** torney of this State to rile aomplainte In the proper court agalnrrtany person, oorporatlon,
or assoclatlon of person%

### uponthe reoelpt oi Intormatlon or the violation or any or the provisions or this Aat.

wse. (1.Any person, rirm, aorporatlon, or association ofpersons vlolatlng anyof the provisions of thisAct shall be guilty or atiedemeanor. Ir any provision or this Aot Isvialatad by any person lndlvldually or by any 

### person or persons representing a aorporatlon, or a9soelation, or by a'aorporatlon, the defendant or defendants upon oonvlation shall bepirnishodby
a rlne of notmore than Firs Hundred ($500.00) Dollars nor lees than One Hundred ($lO(!.OO) Dollars.

"SEC. 7. by agreement by any person, oorporatlon, or assoolatlon In violation of this Act shall be illegal and such person, aorporatlon,
or essoolatlon shall not be able to reoover for any services rendered in violation of this **Aot,** either on the contraat or a quasi-aontraatual obllgatlon. **Ii** any person, oorporatlon, or eeisoaiatlon of persons shall, by any eot or 01&s- ~105 inviolation of this Aot, aause any loa%, damage, or Injury to any person, oorporatlon or assoolatlun ofpersons, suohperson, oorporation, or aesoaloU.on of perf.ona,shall be liable in actual damages therefor to any person, oorporation, or assooiatlon of persons who sustained any suoh loss, damage or injury; and suoh llablllty ahall be absolute and not dependent upon any queetlon or showing of want of &kill, oare or UIlIgeno%.Honorable Tom L. Deauohamp, Pag% 8

“SEC. 2. All laws and parts or laws Inaonslstent herewith are hereby repealed, and in oass sny seation, subdlvlslon, paragraph, or sentence of thisAot 1sdeolared umonstitutionr:Jthe validity of the,,restof this Aat shall not be affeoted thereby."
SeotIons'48, 49, and 50 ofr.rtlole1302, Revised Cloll.Statutes; read as follows:

"48. To aaoumulate and lend

### moneywlthout bankinG or dlscountlng privilege%.

"49. For any one ormore of the rollorrIng purposes: To aooumulate and lsnd PIoney, purahaae, sell and deal **15** note!, bonds 

### and seourltles, butwithout banking and dlsoountlng privileges; to aot a8 ttistee

## undera5y lawful express trust oolnmittedto them by oontraot end as agent for the performsnoe of any lawful eat.

"50. To subscribe for, purohass, invest 

### 15, hold, own, assign. pledge 

### endotheralso deal in and dispose of sharss or~aapital stook, bond%, mortgages, debentures, notes and other seourltles, obligations, oontraots end evldenoee of indebtedness or foreign or **domea** tic corporations not oompetlng ,titheeoh other in the same line orbusiness; provided tho powers and authority herein Oonfsrretdehall 

### In no way arrect snp provlalon'of the ant& trust laws or th:s State."
Article 1524a, Revised Civil Statutes, embreaes ocrporations heretofore oreated and hereafter oreated having for the** purpose or purposes any or all the powers LJOWeuthorlzed 15 subdIvislon% of 48, 49, or SO of Artlole 1302, Revised alvil Stetutes ofTexas, 1925, and hexetofore or hereafter qr.Qreated having inwhole or Lnpart any purpose or purposes :5oweuthorlsed In Chapter 275, Senate Bill No. 232 of the General and Speolal Laws of the Regular Session of the 40th Legislature.

In the case of In re BraI5ard, 26 Paa. Rsp. (2) 769,

### HonoribloTom L. SeauohamPp,Page 9

where a former probate judgewho, for oo~~etensation, without being edqltted to practloe law end without paying llaenae fees, advlsed persons inprobate matter6 nnd prepared and filed paper% In oonneotlon therewfth, andwho prepared a&l010s of lriaorporatlonfor corporate organizers, whloh work wa% neoessax toolear titles in loon transections, the Supreme Court of Idaho held that the for%er judgewasengaged In 

### thepraotloe of law rendering him guilty of ooctampt of the **Supreme** Court of Idaho althougb he did not sign the papers e5d pleadings as attorney, and 

### hedid not acoept legal employment sxeept rrom persons who had already 

### enllatedhi% 

### servloesInbuslners matters oocneoted with loans.

The Supreme Court 

### ofthe State of New York in the
case of In re Paoe, 156 14.Y. Sup. 641, held 

### in erieot that where A aorpora,tioa,known aa the Corporation Coupany ofDolsware malntalned~en offloe InNew York City and dlst*rIbuted alroulars to attorneys at law, Offering either to

### inoorporete oompanlesunder the laws of Delaware or to furnish all 

### ths neoessary **r0m,** eta., for the attorneys to do so themeelves, end thereafter through %uoh oorporatlon Hew

### Yorkattorneys, who 

### aatedasroswarderstothehome ortloe 

### InDelawars,Inaorporated three oo>panIes. The aorporatlon wus guilty or e vlolatlon of the Penal Lawprohlblting the praotloo or law by 

### aorporatlons **ainoe** thepraotIoe of law isnot 

### lI&tsd to appearlag In oourt, or advlsI5g and aa%IstI5g In the 

### aonduot
or lItigatIona, but embraaes the preparation of pl%adlngs and all other papers Inoldent to l otlo5s and.speolal ~~I!OOe%ding%, oonveyances, the preparation of legal Instruments of all klads, and the glvlne,or all legal adVIOe to allents, and 

### Potions taken for them inmatters oonneated with the law, lwluding the preparation ofpapers requisite for the Incorporation of the oompany and the Inoldental advise necessarily given In eon' neotlon therewith.

7% do not rind any Texas Ceoislons construing Section 3or Article 43Ga quoted ebove. Xe quote from.opInItn ho. O-647 written hay 5, 1939, byHonorable dames ?. Hart, Assistant Attorney General, wklob oon%truee Seotion 3of Artlole 43Ga **ri9** roiiowt3:

*The ",ue!itIou

remains as toWiet was the Intention cr the Legislature In providing in SeatAm 

### 3that *It shallbe unlnwt'ulror any corporstion to practloe law cf%defined by this

### HonorableTomL..Beauohakp, Page10

**Adt** or to appear as an attorney r0r say parson other than itself.
. .* It Isour opInion that the words *otherthan Itself'were used 80a8 tomake itplain that a aorporetlon is not prevented trOm hIring aregular stati
or lawyers to appear and represent it in court. In a sense, suchaction by the corporation tight 

### beconstrued to+oonstltute the Indireot praatioe of the law **by** the oorporation for iteelf, but suoh action Isnot illegal because the oorporatlon by sodoing is seaurlng legal representation for Itself and not for other persons. We believe that the LsgIslature had intind certain cases wherein ithas been held thot a oorporation Is indlreotly prdotiolng lawwhere It, In eifect, hires E staff of lawyers and furnishes legel repreeentetlon to other peraonm.- See In reUaolub 

### ofAmerica,(Mass.)3N.EG (2). 272, ,105A. L. R. 1300; Peopla 0. Motorists **Asso** olatlon of Illinois, 354 Ill. 595, 188 N. IC. 827; United 8tates Title Cunranty Oonipanyv. Brown, 217 N.Y. 628, &ll N. E. 826. We think thet the Legislature intended, by using the words 'otherthen itself,' tomake itplain that 

### acorporation canhire a regular legal atafi to represent It,but that the Legfslatum did not intend tp confer On oorpOratiOAt3 the right tobe represented e:oept 

### byagent8or attorneys who have been duly lioenaed topraatloe law."

We do not .bellevethat the C~T Corporation System or 

### theproposed corporetlon mentioned in your **in@ry** 

### undertheir ITvzse clauses are authoiized to render the servIoes outlined

.
In view of'the foregoing authorities you ere reepeotiully advised that It is the oplnlon of thI8 Department that your questions should be answered as follows:

(1) No.
(2) Yee.
(3) Yes.Hanorabie Tom L,Beauahamp, **Page** 11

(4) No.

Aa we have answerad your fourth question Inthe negatIve it 18 not neoes8ciry**to** amwar queetfone NOe. 5and 6.

Trmting that the **foregoing** answers **your** inquiry,
we remain

Your8 very truly

ATTORNXY GEh:ERi'iL OF TEXAS


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