The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1928-10-11
DIVISION OF GASOLINE TAX
PROPOSED AMENDMENT NO.

BY the adoption of chapter 444,
Laws 1927, the legislature has pro-
posed an amendment to section 3,
Article 10 of the Constitution relating
to corporations. This section now
reads as follows:
Each stockholder in any corr
poration, excepting those organ
lied for the purpose of carrying
on any kind of manufacturing or
mechanical business, shall be
liable to the amount of stock held
or owned by him."
II amended as proposed, this sec.
ton will read as follows:
"Sectlon 8. The Legislature shall
have power from time to time to
provide for, limit and otherwise
holders or members of corpora
lions and cooperative corpora
tons or associations, however or
ganized. Provided nothing in
this section shall be construed as
repeating or in any manner affect
ing the liability OF stockholders IN
banks or corporations organized
for banking purposes as provided
in Section IS of Article of the
Constitution of the State of Min
nesota."
The Purpose of the Proposed Amend.
ment:
The constitution as It now stands,
makes every stockholders In any cor.
poration, excepting those organized
for the purpose OF carrying on man.
ufacturlng or mechanical business
liable for the debts of the corpora.
tlon, II the corporate assets are In.
sufficient to pay the debts, up to an
amount equal to the par value OF the
stock held or owned by him, In add
ton to any sum that he may owe the
corporation on account Of his stock.
The purpose Of the proposed amend.
ment Is to authorize the legislature to
prescribe and regulate by law the
In all corporations, including -oper.
alive corporations or associations,
however organized, except stockhoid.
ers In corporations and joint assoeia.
tlons organized for banking purposes
S BY sse.l ssus Is D "a Article the Con.
stitution. The effect Of this excep-
tion ls explained in the next following
paragraphs.
The Effect Of the Proposed Amend.
nent:
The effect of the proposed amend.
the present fixed rule Of stockholders
liability prescribed by the constitu.
tion, except in the case OF stockhoid.
ers In banks which Issue bank notes.
and to place the matter OF prescribing
and regulating the liability Of stock
notQSfo IN All C0FpUTaSioUSs So"oPSIds
tive corporations or associations Great.
ed under the laws OF this state tex.
cept those banking corporations and
Joint associations specifically excepted
therefrom) entirely within the control
Of the legislature, subject to change
from time to time as they may see
lit.
Stockholders In banks Of the kind
provided for by section 10 Of Article
8 Of the Constitution are by that sec.
tIon made liable for the debts Of such
corporation or association up to an
amount equal to double the amount
of stock owned by them. Stockhold.
ers Of this class are excepted from the
operation Of the proposed amendment.
However, the only banks provided for
by section IS are those that Issue bank
notes. There are meme such In this
banks are not within the exception Of
the proposed amendment but fall In
the same class as stockholders In other
corporations.
The ballot used at the election
should have printed thereon the fol.
lowing:
Seconds
LIABILITY OF STOCKHOLDERS
IN CORPORATIONS.
Amendment to section 3, Article
10, of the Constitution, author
izing the legislature to prescribe
and limit the liability of stock
holders in corporations.
= YES.......s
Il. 6. A. YouNooUlsT, ID
Attorney General.