The Ely miner., 1930-10-10
Proposed
Amendments
to the
Constitution
of the
State of Minnesota
Submitted by the Legislature at
its General Session, 1929, to
the People of Minnesota at
the General 1880 Election To-
gether with Statements of
Purpose and Effect
of each
Prepared by
HENRY n. BENSON
Attorney General of Minnesota.
Addressed to
MIKE HOLM
Secretary of State.
STATE OF MINNESOTA,
LEGAL DEPARTMENT.
HENRY N. BENSON,
Attorney General.
st. Paul. Minnesota, February q. 1880.
HONORABLE MIKE HOLM,
Secretary of State:
In compliance with the provisions of
section 46. General Statutes 1928. l fur
nish you herewith a statement of the
purpose and effect of proposed amend
ments to the constitution of the state of
T.,,y,= sI h V1,YHsN Nw.IN
PROPOSED AMENDMENT NO. /.

BY the adoption of Chapter 429, Laws
1929. the legislature has proposed an
amendment to section of article 10 of
the constitution relating to corporations
This section now reads as follows:
Each stockholder in any corpora
ton, excepting those organized 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 section
will read as follows:
1.-The Legislature shall have power
from time to time to provide for.
limit and otherwise regulate the liza
bility of stockholders or members
of corporations and cooperative cor
porations or associations, however
organized. Provided every stockhold-
er in a banking or trust corporation
or association shall be individually
liable in an amount equal to the
amount of stock owned by him for
all debts Of such corporation con-
tracted prior to any transfer of such
stock and such individual liability
shall continue for one year after any
transfer of such stock and the entry
thereof on the books of the corpora
ton or association"
The Purpose of the Proposed Amendment:
The Constitution, as II now stands,
makes every stockholder in any corpora
tion, excepting those organized for the
purpose of carrying on a manufacturing
or mechanical business, liable for the
debts of the corporation, If the corporate
assets are insufficient to pay the debts,
up to an amount equAl to the par value
of the stock held or owned by him, In ad.
dition to any sum that he may owe the
corporation on account of his stock. The
purpose of the proposed amendment Is TO
authorize the legislature to prescribe and
regulate by law the liability of stockhold.
ers members in all corporations in.
cluding cooperative corporations or asso.
Citations, however organized, except stock
holders in banking or trust corporations
or associations.
The Effect Of the Proposed Amendment:
The effect of the proposed amendment,
II adopted, will be to abrogate the present
fixed rule of stockholders liability pre-.
scribed by the constitution, except In the
case of stockholders in banks or trust
companies, and to place the matter Of
prescribing and regulating the liability
of stockholders In all corporations, CO.
operative corporations or associations
created under the laws of this state lex
cept banking or trust corporations or as
sociations) entirely within the control Of
the legislature, subject to change from
time to time as the legislature may see
fit.
Stockholders In banking or trust cor.
porations or associations will remain, as
they now are, liable in an amount equal
TO the amount of stock owned by them.
The ballot used at the election should
have printed thereon the following: