Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1906-12-31
NEW MEXICO LAW
OF INCORPORATION
Many Advantage
GUS Features Get
Results.
new JERSEY STATUTES
Were Used as Models-..Di-
rectors May Issue Stock or
Property.

Property.
When Territorial Secretary ]. w.
Reynolds will have completed his re,
port on Incorporation fees received
for the quarter ending today a large
increase for the year 1906 will be
shown over 1905 and an even greater
gain as compared with 1904
1t will be several days yet before
accurate figures can be given for the
purpose of making comparisons by
calendar years in the number OF cor
porations organized and the amount
of revenue derived in fees therefrom
The Territorial Secretary's Office is
guided in its reports by the Federal
fiscal year which begins on July !
instead OF the Territorial fiscal year
commencing on December |.
The New Mexico incorporation law
which became effective early last
year has many advantageous features
which capitalists have not been slow
in recognizing and it IS having the
desired effect of attracting outside in
vestors.
Law One of Best in Country.
Secretary Reynolds Is Of the opinion
that this new law governing corpora
tons in New Mexico is one of the very
best in the country by reason of its
comprehensveness and liberalty. He
gives some interesting facts concern
ing it and what has been achieved
since it became operative in an inter
view as follows.
1.-THE results which have been at
tanned during the past two years
have demonstrated very clearly the
wisdom of the last Legislative AS
sembly in passing what is known as
the General Corporation Law of 1905.
The Act in question is patterned very
closely after the New Jersey corpora
alton law, which Is regarded by au-
thorities as one of the most compre-
hensive and at the same time liberal
statutes upon the subject which exists
in any of the States of the Union to-
day. The particular advantage de-
rived by the people of New Mexico
from the adoption Of this .comprehen-
siye act Is the fact that almost every
section has been subjected to inter-
probation by the courts, not only of
New Jersey, but in great many in
stances by the Supreme Court of the
United States. AS the act itself con
tains specific provisions to cover al
most every phase of corporation or
ganization and management, the ad-
vantage to be derived by New Mexico
corporations in following such stat
ute is readily discerned.
Has Many Liberal Features.
"Among the liberal features of this
act which make it especially attrac.
tive to prospective incorporators may
be mentioned the provisions which
enable the directors to issue stock for
property or services. thus enabling
persons who have valuable properties
of any nature to turn their holdings
over to a corporation and receive in
payment therefore such proportion of
full-paid stock of the company as the
Board of Directors may determine
proper. Another feature which is at.
tractive particularly to the promoters
n re vy,ipinr tiouc ;u tho r,royic
ion which allows the incorporators to
file certificate of non-liability, and
thus do away with any question as to
the liability of the stockholder upon
stock held by him. beyond the amount
Of capital actually subscribed at the
time the business is started. The ex-
haustive treatment of the subject of
consolidation. or merger of corpora.
tions carrying on the same or a SINH
lar business: the complete provisions
for dissolution of corporations which
may wish to close up business as
well as the provisions which are made
for putting insolvent corporations into
the hands of receiver are all worthy
of special study by any one interested
in corporations and their manage
ment.
Objects for Which Act Was Passed.
AT the time this act was passed it
was hoped that the liberal and com.
prehensive provisions of the statute
would attract prospective incorpora.
tors and that numbers of corporations
would be organized in New Mexico,
{ not only for the purpose of conducting
4 business here, but elsewhere as we'll.
This hope has not failed in its fulfill.
ment, as will be observed from the
fact that prior to January l, 1905, the
average annual income derived by the
Territory treasury from incorporation
fees was about 100000; in 1905, al
though the provisions Of the act were
not generally known until after the
publication of the session laws in that
year, the receipts from corporation
fees were s10,S5O5O, while in 1906.
since the provisions of the act have
obtained more general publicity, the
Territorial treasury will receive at
least $4,000.
& TT is possible that this act might be
I further improved by a few minor
amendments which would correct dis.
crepancies, real or apparent now ex.
listing in certain portions Of the law,
but upon the whole this legislation
was not only one of the most needed
acts, but has also shown itself to be
! one Of the most satisfactory passed by
the New Mexico Legislature during
regent years" IA