,496 

OFFICE OF THE ATIORNEY GENERAL OF TEXAS 

. I AUSTIN 

Honorable Sidney Latham 

Secretary of State 

Austin, Texas 

e oharter which 

olauae froai the 

II undertakes to. 

tions is shown in many parat la formed is to 

or laprove-ant and to 

said purpose and to 

to carry out the purpose or thfs 

corporation aa above set forth, it is the intention 

of the incorporators herein to proaeed ae follows: 
axendob, and aa auah to acquire, repair, aaintaln 

and operate a hourfng projeat in or within two 

files of the llmlt8 of Dalla8, DalIa County, Texa8. 

e(g) When the indebtedness ot thl8 aorporatlon 

on the note to be exeouted and delivered by it to 

the Badera Housing Admini8tration, a8 part of the 

purchase priae for the ropertier h8reinabOve rei8XT8d t0 ha8 been palg and the prererred stoak 

provided $or In thi8 ah&ter ha8 be8n xetlred, th8n 

the PUCDO~O olauee Of thl8 corporation Shall automatioally be llsited to th8 lMSUag8 now 88t ro 

b th8 tiret parauraph Of thf8 88otiOEl of thi8 oharParagraph ~I~~s8ctiOlX 0, (1). Mad8 in part: 

v * * * the aor oration without prior or other 

approval or author P 8atiOn may rrnt or lea80 (a) 

dwelling acoomdatlon8 to tenant8 8ololy ror 

~‘~:~Os~~~?~~‘8~~~~~~~8’~~~~ 

aooomop~1~fl8 ror a peribd not to 8x098 

par8 5 

The lnoorporatars! have quoted lubdirlrlon 48, Artiale 

1308, V.A.C.B., and we a8aum8 arguendo that th8y ham undertaken 

to conrlne th8lr pOWer8 thereto. 

In numerous paragraph8 in the oharter8 aomlng thereafter 

thry hare attempted to interpret the80 power8 under Subdlvlslon 47 

(D" 

d to have the Searetar 

hen the purpose clause f 

or State Pa88 UPOn and aPPrOve the s(Mb. 

II a charter 18 in the language of a subdirisfon of Axtlale 1SOS and the charter go88 further and lnterPrOt8 that subdivision of the 8tatute in many Waj8, the &oretary 

or stste has the right to haV8 8uoh intfmpr8tatlO19r8#EoV8d a8 BUTPlUS88. Whether a partlt)~ular traneaation or manner Of doing busiu.88 18 within the purpose OlaUS8 18 a question for the UOUrt8 and 

not ror the Searetarg or State to determine. 
Johnston f. Tcwn8end, 103 Tet. lBt, 184 6. $1. 411, 

wa8 an RDo1iOatlOu to the SUPr8m Court r0r 6 wet 0r mnndapu# roquiiiis the S8aretary 6i State to fli8 the ohhrter ot 

~corporatlon offered by the relirtorr. In reruelng the ,imndaam, Juetice William8 8aidr 

= * * * A Charter UU8t 8p8ciiJ the p~pOe8ibT 

which the corporation 18 to b8 created. Thi8 8hould 

b8 don8 with 8UfilCient alearne88 t0 enable the S8Or8- 

t8Xy Or stRt8 t0 844 that th4I pUrp084 8pMiried 18 

one provided ror br the statute and to define with 

80lR4 certainty the 8OOp8 Of t&8 bU8in488 Or undertakl 

Y 

t6 be pUT898d. The ohartor tender.6 in this 

Oa88 8 80 g4n8rRl and ind8finitO in it8 lem&uage 

that, while it mieht Rp 1 to 0118 bU8in488 8uoh 68 

W8 hare nentioned OOn8 'pt 8 

end mlnin 

ing Or both manutaoturiag 

with th8 purohare end 8a18 Of good8, 8tO., 

U88d ior P t, it might 4180 be taken to authorlz8 th8 

tran8ROtiOn Of tW0 bU8ine8888, On8 Of llWlUfaatUriU& 

and another ior nlnln 

e 

uxoha88 and 8al8 lno f 

0 b4 the pUr 084 Of the r41atOr8 t0 US8 the c 

ror the carry P 

bu8lneese8. 

ng on or what we regard a8 tw0 distinct 

We mey look to thl8 a8 illUStratiV8 Of 

W8n a8 tho8e 8p4Cie11~ inter88t8d in cOrporRtiOn8, 

are to b4 xoteated,a 

ii * * * Al r 

b&St th4 688UmptiOll Of pOW4r8 

not grant8 . 48 th8 oharter 0rr4r.d oan b8 

lnterar8ted a8 f84anfnR and 18 intend8d to m8aQ that 

Some state8 require corporation ahartere to set out th8 

power8 Or th8 CorDoration, but ia Texas, &tic14 1904, V.A.O. S., 

requires th& the purpose be etatad in the abarter. When thi8 18 
Honorable Sidney Lathnm, page 4 

do- the aorporatlon ha8 all powera neoesaary to aarry out th8 

porpose and the 8xtent thereor is a queetion of law ror the 

Q&xte. 

YOU are reepeatfully advised that yaa have the power 

w dieapprove tie proposed ohorter@. liavlng glvsn this anatarar 

to your prinoipal question, we deem it unnecessary to anmr 

ycaar other quuestion8. 

Tours rexy truly 

ATrOmm tlxJ:mizRAz OF T%xAs 

4gmL-4 LJ2.m 

BY David k. Heath 

Assistant