Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-02-08
FOREIGN CORPORATIONS.
Should They Pay an Additional Fec
on an Increase OF Stock?
Attorney General says They Ars Re
quirsd 90 Pay twenty-five Cents
on Each Tbonshnd Dollars.

The attorney general has submitted
an opinion to Secretary OF State Ham
mont on the question OF 3 foreign cor
porstion that had filed original articles
OF incorporation with the secretary Of
the Territory of Utah, and who now
desires to file In tho secretary OF states
office, an amendment to It's oriBinai
articles, whether or not they would be
REQUIRED TO pay an additional twenty
i've cents for each thousand dollars Of
such increase.
Relersnce is made to the Constitu'
ton OF the State which reaus:
No corporations organized outside of
tbia State. shall be allowed to transact
business within this Safe, on conditions
more favorable than those pre-
scribed by law to similar corporations,
organized under tho laws OF this state.
Attention IL called to chapter 81 OF
Tie laws o, 1896, wherein is prescribed
he amount OF foes to be cOilecteu'
Proceeding tue attorney general says
Ia, MS suppose that the foreign corpor-
alton conceiving II 10 DO to its advantage
To increase its capital stock and thus en-
large the scope Of its business, presu M
ably to the disadvantage OF It's cOmpolltor'
IL presents it's amended articles for filing
to the secretary Of state, showing an ~
crease OF capital stock from one miiion
dollars to three million, six hundred
thousand dollars. suppose that Zee OF
twenty-five dollars only IS required Tor
The fling OF said amendments in tho
secretary OF states office; on the other
hand, suppose the domestic corporation,
spurred on by the action oil Its compel-
Tor, and realizing that III order TO COM
pate successfully 1t, too, must increase
its capital stock, and thus, the extent OF
its business. 1t presents It's amended
articles increasing It's capital stock from
one million dollars to three million, six
hundred thousand dollars. Under the
law as 1t now stands, there can be no
question but that such corporation would
ue required 10 pay fee for the Ming OF
its b said amendment increasing It's
capiial ocls in the sum OF twenty-five
cents for each thousand dollars oil such
increase, which, in the case we have sup
posed would amount to $500. .Thus II
will BIO seen, that TO place such con-
struction upon the provisions OF the
statutes would be TO discriminate in favor
of foreign corporations, which would al
low them to transact business within tho
State upon more favorable conditions
than those prescribed by law to similar
corporations organized under tho laws of
this state; as in either case, the payment
of the required fee would be condition
precedent to the transaction Of business
upon basis OF capitalization resulting
from the amended articles 10 be filed.
1t is fair to presume, that in tho enact
ment OF these provisions the Legislature
intended that they should harmonic
with the provision Of the Constitution.
And reading and constituting them togeth-
or, am OF opinion that tho exception in
favor OF foreign corporations organized
prior to the,iaking effect OF said law, is
limited to receiving and filing with tho
secretary OF state, their original articles
OF INCORPORATION, and that they arc not
entitled to avail themselves OF auch rule
In tho matter of filing amendments Ia
their original articles Increasing their
capital stock.
am therefore OF opinion, that in the
case you suggest it would DO your duty
b. secretary OF state, TO require tho pay
ment of twenty-five cents upon each
thousand dollars of Increase of capital
stock, before receiving and filing the said
amendments.