The Montgomery advertiser., 1901-07-27
OFFICIAL REPORT OF THE PROCEEDINGS OF
 THE CONSTITUTIONAL CONVENTION OF ALABAMA

Section ls 1-2 and recommend it's adop- ton.
 Section 13 1-2. After the ratification of the Constitution, no corporation. society, organization or association shall be allowed to charge or collect for, or upon the loan or forbearance or money, goods things in action, either in the way or interest. fines, forfeitures. premiums, commissions or sums Of money for the purchase of stock, bonds or any inteerst in the business of such corporation, society, organization or association, as condition upon which such loan or forbearance is obtained or in any other way connected with such loan or forbearance as a charge. a greater Amount than the legal rate of interest provided for by the general laws of the State upon the loan or for bearance of money. goods or things in action, and all such sums of money paid such corporation. society, organi- zation or association in excess of the legal interest provided for by the law. by whatever name called. shall be credited on the principal of the loan made by said corporation, society, or ganization or association, and every such loan made in Alabama shall be governed by the laws of this State!
 Respectfully submitted,
 John F. Proctor.
 W. T. L. Cofer.
 J. Lee Long.
 An ordinance to provide for the or ganfzation and regulation of corpora tions in the State of Alabama.
 Be it ordained by the people of Ala bama in Convention assembled. That Article XIV of the Constitution of 1875, except that portion thereof un- der the head of Banks and Banking" be stricken out and the following be inserted in lieu thereof:
 Section 1. The Legislature shall pass no special act conferring corporate powers, but they shall pass general laws under which corporations may be organized and corporate powers of every nature obtained, subject, never theless, to repeal at the will of the Legislature; and shall pass general laws under which charters heretofore granted may be altered or amended. The Legislature shall. by general law. provide for the payment to the State of Alabama of franchise tax by corpora tions organized under the laws of this State, which shall be in proportion to the amount of capital stock.
 Sec. 2. All existing charters or grants of special or exclusive privileges. under which a bona fide organization shall not have taken place and business been commenced in good faith, within twelve months from the time of the ratification of this Constitution, shall thereafter have no validity.
 Sec. 8. The Legislature shall not remit the forfeiture of the charter of any corporation now existing. nor alter or amend the same, nor pass any gen. eral or special law for the benefit of such corporation, other than in execu- tion of a trust created by law or hy contract, except upon the condition that such corporation shall thereafter hold it's charter subject to the pro- visions of this Constitution; and every amendment of any charter of any cor poration in this State, or any special law for it's benefit, accepted thereby. shall operate as novation of said charter, and shall bring the same un- der the provisions of this Constitution: Provided, that this section shall not extend to any amendment for the pur- pose of allowing any existing road to take stock in or aid in building of any branch road.
 Sec. f. No foreign corporation shall 
 having at least one known place of business and an authorized agent or agents therein, and without filing with the Secretary of State a certified copy of its articles of incorporation or associa- tion, and of the law and authority un- der which 1t is incorporated. Such corporation may be sued in any county where 1t does business, by service of process upon an agent anywhere in the State. The Legislature shall, by gen. eral law. provide for the payment to the State of Alabama of a franchise tax by such corporation. which shall be the same as that required of do- mestic corporations and in proportion to the amount of it's capital stock, but strictly benevolent or religious corpora ttons shall not be required to pay such a tax.
 Sec. 5. No corporation shall engage in any business other than that ex- pressly specified in its declaration or application.
 Sec. 6. No corporation shall issue stock or bonds except for money, labor done, or money or property actually received; and all fictitious increase of stock or indebtedness shall be void The stock and bonded indebtedness of
  cept in pursuance of general laws, nor without the consent of the persons holding the larger amount in value of stock, first obtained at a meeting to be held after thirty days notice given in pursuance of law.
 Sec. T. Municipal and other corpora- tions and individuals invested with the privilege of taking private property for public use, shall make just compensa ton, to be ascertained as may be pro- vided by law, for the property taken, injured or destroyed by the construc- tion or enlargement of it's works, high ways or improvements, which compen- sation shall be paid before such talk Ing, injury or destruction. The Legis- lature is hereby prohibited from de- priving any person of an appeal from any preliminary assessment of dama- ges against any such corporation q, individuals made by viewers or other. wise, but such appeal shall not deprive the person who has obtained the iudo. ment or condemnation from a right n, entry, provided he shall have giver bond with good and sufficient cureties to pay such damages as the propertv owner may sustain; and the amount or such damages in all cases of apneaI shall, on the demand of either marty be determined by jury according to law. '0 Sec. B. Dues from private corpora tions shall be secured by such meane as may be prescribed by law. but in no case shall any stockholder be in- dlVldually liable otherwise than for the unpaid stock owned by him or her.
 Sec. 9, No corporation shall issue