Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1910-10-24
CORPORATION FILE
IS DRASTIC
Committees of Arizona Con-
stitutional Convention Get
Down to Work Today
EARLY ADJOURNMENT TAKEN
Total of Propositions introduced
Up to the Present Is
Ninety.

NSSh VI me COIIollbutlOddl COHN
opened with the introduction of seven
propositions, swelling the total to
ninety. Early adjournment was taken
until tomorrow but numerous commit
tees were in session most of the day.
The following proposition, one of
the most drastic ever introduced in
a law-making body for the govern
ment of corporations, was presented
in the constitutional convention by
Mr.. Ellinwood of Cochise:
Section /. Corporations may be
formed under general DAVIS, but cor
porations organized under the laws
of this state, which shall be in pro-
portion to t he amount of capital
stock; but strictly benevolent, educa-
tional or religious corporations shall
not be required to pay such tax.
Section 2. All existing charters,
under which bona fide organization
shall not have taken place and busi-
ness commenced in good faith within
twelve months from the time of the
approval of this constitution, shall
thereafter have no validity.
Section The legislature shall
not remit the forfeiture of the char
ter of any corporation now existing.
or alter or amend the same, nor pass
any general or special law for the
benefit of such corporation, other
than in execution of a trust created
by law or by contract, except upon
condition that such corporation shall
thereafter hold it's charter subject to
the provisions of this constitution
Section 4. The legislature shall
not pass any laws permitting the leas-
ing or alienation of any franchise, SO
as to relieve the franchise or proper
ty held under the liabilities of the
lessor or grantor, lessee or grantee,
contracted or incurred in the opera
ton, use or enjoyment of such fran
chise, or any Of it's privileges.
Section 5. No corporation shall
engage in any business other than
that expressly authorized in it's
charter or the law under which it
may have been or may hereafter be
organized; nor shall it hold for a
longer period than five years any real
estate except such as may be neces-
sary for carrying on it's business.
Section 6. No corporation organ
lied outside the limits of this state
shall be allowed to transact business
within this state on more favorable
conditions than are prescribed by law
to similar corporations organized I'M
der the laws of this state; and no for
eign corporation shall be permitted
to transact business within this state
unless said foreign corporation is
by the laws of the country, state, or
territory, under which it is formed,
permitted to transact like business
in the county, state or territory of its
creation.
Section Z. No corporation shall is.
sue stock except for money, labor
done, or property actually received to
the amount of the par value thereof,
and all fictitious increase of stock
or Indebtedness shall be void; and the
legislature shall prescribe the neces.
sary regulations to prevent the issue
of fictitious stock or Indebtedness.
The stock and bonded Indebtedness of
corporations shall not be increased
except in pursuance of general law,
nor without the consent of the per
sons holding the larger amount in val
ue of the stock, first obtained at a
meeting to be held after thirty days
notice in pursuance of law.
Section s. No corporation shall
issue preferred stock without the con-
sent of the owners of two-thirds of
the stock of said corporation.
Section 9. No domestic or for
eign corporation shall do any busi-
ness in this state without having
one or more known places of bust
ness and an authorized agent or
agents in the state upon whom pro-
cess may be served. Suit may be
maintained against a foreign corpora
ton in the county where an agent of
such corporation may be found, or
ir the county of the residence of the
plaintiff, or in the county where the
cause of action may arise
Section TO- In all elections for di-
rectors or managers of any corpora
ton, each shareholder shall have the
right to cast as many votes in the
aggregate as he shall be entitled to
vote in said company under its char
ter, multiplied by the number of di-
rectors or managers to be elected at
such election; and each shareholder
may cast the whole number of votes,
either in person or by proxy for
one candidate, or distribute such votes
among two or more candidates, and
such directors or managers shall not
be elcted in any other manner.
Section IL. The stock of all
stockholders shall be individually
and personally liable for the indebted
ness of said corporation to the amount
Of the par value of their stock sub
scribed and unpaid; and the stock
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