Daily Los Angeles herald., 1878-11-05
Tho Prospective Check on Corpo-
rations.

Following is the text of amend
ment No. 444, introduced in the
Constitutional Convention by the
Committee on Corporations other
than Municipal, october 30th, 1878,
read, ordered printed and laid on
the table:
SECTION !. Corporations may be
formed under general laws, but
shall not be created by special Act.
All laws passed pursuant to this
section may be altered from time To
time, or repealed.
Sec. 9 Dues from corporations
shall be secured by such Individual
liability of the corporators and
other means as may be prescribed
by law.
SEC. 3. Each stockholder of a
corporation, or joint stock ass0cia-
tion. shall be Individually and per.
sonaIly liable for his proportion of
all its debts and liabilities.
SEC. T. The term corporations,
RS used in this article, shall be con-
strued to include all associations
and joint stock companies having
any of the powers or privileges of
corpo rations not possessed by indi.
viduals or partnerships; and all
corporations shall have the right
to sue and shall be subject to be
sued in all courts, in like cases as
natural persons.
SEC. s. The Legislature shall
have no power to pass any Act
granting any special order for bank
ing purposes; but corporations or
associations may be formed for such
purposes under general laws; but
no corporation or association shall
make, issue or put in circulation
any bill, check, ticket, certificate,
promissory note, or other paper, TO
circulate as money in this State,
except the lawful money of the
United States.
SEC. 6. All existing charters,
grants, franchises, special or ex-
elusive privileges, under which an
actual and bona fide organization
shall not have taken place, and bus
iness been commenced in good
faith at the time of the adoption Of
this Constitution, shall thereafter
have no validity.
SEC. 7. The Legislature shall
not extend any franchise or charter,
or remit the forfeiture of any fran
chise or charter Of any corporation
now existing, or which shall here
after exist under the laws of this
State.
Sec. 8. The exercise of the right
of eminent domain shall never be
so abridged or CT astrued as to pre-
vent the Legis.. ..ture from taking
the property and franchises of in
cOrpOrated companies and subject
them to public use the same as the
property of individuals, and the ex-
ercise of the police power of the
State shall never be SO abridged or
construed as to permit corporations
to conduct their business in such
manner as to infringe the equal
rights of individuals or the general
we'll being of the State.
SEC. 8. No corporation shall en-
gage in business other than that
expressly authorized In its charter,
or the law under which it may have
been or may hereafter be organized;
nor shall it hold any real estate for
a longer period than five years, ex-
cept such as may he necessary for
carrying on its business, or which
is incident thereto.
Sec 10. The Legislature shall
not pass any laws permitting the
leasing or alienation of any fran.
chise, SO as to relieve the franchise
or property held hereunder from
liabilities of the lessor or grantor,
lessee or grantee, contracted or In
Cured in the operation, use or en-
joyment of such franchise, or any
of its privileges.
Sec. IL. No corporation shall
issue stock or bonds, except for
money paid, labor done or property
actually received, and all fictitious
increase of. stock or Indebtedness
shall be void. The stock and bond
ed Indebtedness of corporations
shall not be increased, except in
pursuance of general law, nor with
out the consent of the persons hold
ing the larger amount in value of
the stock first obtained at meet
ing called for that purpose, first
giving sixty days public notice, as
may be provided by law.
SEC. ~. The Legislature shall
provide by law that in all elections
for directors or managers Of incor-
porated companies every stock
holder shall have the right to vote,
in person or by proxy, for the num-
ber of shares of stock owned by
him, for as many persons as there
are directors or managers to be
elected, or to cumulate said shares
and give one candidate as many
votes as the number of directors
multiplied by the number of his
shares of stock shall equal, or to
distribute them OH the same prln-
ciple, among as many candidates
as he shall think fit; and such di-
rectors or managers shall sM be
eiecteu In anr "a