The Republican. [volume] (Oakland, Md.) 1877-current, 1907-11-28
A PROPOSED NEW
CORPORATION LAW.
Features of The Bill Which is Intend
ed to Change Old Methods.

delegates Tor the third time from
Baltimore City, has prepared an
important bill affecting the cor
poration laws of Maryland. The
bill, with some slight alterations,
embraces the first So sections of
the act reported by the Corpora
ton Commission to the last legis-
lature. The commissions full re-
port covered sol sections.
Mr.. Lehmayer's bill covers %
typewriter pages. The general
provisions of the law are in accor-
dance with the trend of legislation
in the most progressive states of
the Union relating to the organi-
cation and management of corpora
tons. The important features of
the bill are as follows.
First-Any three persons can
incorporate, one only being re-
CURED to be resident of Mary
land.
Second-One director only is re-
quired to be resident of Mary
land.
Third-Ten per cent. of the
stockholders have the right to in
spect the books.
Fourth-Business can be COM
menced before any capital is paid
in and before subscription 20 any
capital stock.
Fifth-Charters are perpetual
unless otherwise declared by the
incorporates.
SiXth-Prefer1ed stock can be
issued and the transferability of
preferred and common stock can
be limited by the corporation.
Seventh-Stock may be purch-
ased in other corporations.
Eighth-The provisions cover
ing amendments to charters are
very broad.
Ninth-Capital stock can be
paid for in money, property or
services; the value of such pro-
perty or services shall be passed
upon by majority Of the stock
holders, and such valuation of
such stockholders is conclusive
upon all creditors.
Tenth - Foreign corporations
must obtain permission to do bust
ness in Maryland; must pay an
annual license tax; must file an
nual reports, and must keep an
agent in the state on whom process
can be served.
Eleventh-Voting trusts are ex-
pressly authorized.
Important provisions in the con-
telnplated act are sections GO to
81, providing for the taxation of
ordinary business corporations. !"
The act defines ordinary business
corporations to be those (which
enjoy no special privileges or fran
chises, whose business is not af-
fected with public interest or
which do not, under the laws of
this state, pay state tax as
franchise tax upon their gross
earnings or receipts. " Insurance
companies, building or homestead
associations, state, national or
savings banks and all moneyed
institutions are excluded.
Every ordinary business corpor-
alton after the year 1908 is ex-
empted from taxation on its shares,
nor are its shares taxable in the
hands Of the holders thereof.
Every such business corpora
ton is required to pay annually to
the state treasurer after 1908 an
annual franchise tax as follows:
Twenty-Five dollars for every full
$50, 900 up to 5000 if the
amount of such capital stock is
more than $500, 900, and not more
than $4,000, 900, then the corpora
ton shall pay an additional
amount equal to ne-fortieth of
one per cent. on the excess; if
more than $4,000, 900, the addi-
tional annual tax shall be at the
rate of $50 for every 81 900, 900 on
the last-named excess.
Section 81 provides as follows /: