The times. [volume] (Richmond, Va.) 1890-1903, 1901-11-17
VIRGINIA CORPORATION LAWS.

Section of the report Of the Constitu-
tional Committee on Corporations pro-
vides that mo corporation shall be au-
tlorized by statute to issue any stock as
fully paid upon which it shall not have
first received actual payment to the full
par value thereof in money, services or
property; and. further, that nothing
other than money shall be received by a
corporate ton in payment for stock or
bonds issued, or to be issued by it, unless
and until the price at which it is to be 50
received in payment shall have been re-
ported to and approved by the State Cor
poration Commission in such proceeding,
and subject TO such right of appeal TO the
Supreme Court of Appeals, if any, as
may be provided by law. No stock or
bonds shall be issued by q corporation
except in the manner and subject to the
regulations and restrictions provided by
general laws. All corporate directors, Of
i;ccrs or agents, who shall issue, or cause
OF authorize to be issued, stocks or bonds
of any corporation in violation OF the
provisions of this section, shall thereby
be guilty of misdemeanor, punishable
by fine or imprisonment, or both, as may
be prescribed by law, and shall, in addi-
ton thereto, be personally liable jointly
and severally to the corporation for the
par value Of such stock and bonds SO
Illegally issued, or caused or authorized
to be issued, by them, in violation of the
provisions of this section
We hope that this section Of the report
will not be adopted, for we believe that
it will do no good and we feel sure that
the effect of it would be to discourage
and restrain enterprise in this State. We
take it that the purpose Of the provision
is TO prevent the watering" of stock, and
that the provision is aimed at trusts, but
way be affected by such q provision,
whereas the organization of small and
desirable corporations within the State
would be seriously hanpered.
There are many citizens in Virginia
who have no capital, or very little. but
who have brain and enterprise, and who
are able from time to time to interest
men Of means in home corporations,
whose object is to build up enterprises in
Virginia. But If every such corporation
organized is to be made subject to the
approval Of a State Commission, it is
very clear that these enterprsng pro-
motors in the State will be seriously
Handicapped in their operations. At any
rate, such a provision in the Constitution
of Virginia would be construed as hostile
to capital, and would tend to that extent,
If no worse, to discourage investments in
this State. Virginia is rich in resources,
and she needs all the money that she can
get to develop them. 1t is, therefore,
good policy to encourage all such invest
ments and all such enterprises whose
purpose is TO develop and increase the
wealth of the State, and it is bad policy
10 discourage such investments and en-
terprises.
II Virginia had it within her power to
regulate all the corporations Of the cour-
try, the case might be different, but it is
we'll known that many States in the
Union now have very liberal corporation
laws with a view to encouraging invest
ments. and if Virginia is going to take
the other tact, she will do no good, but
will seriously cripple the enterprise of
her own citizens.