The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1930-10-29
Prepared by
HENRY n. BENSON
Acknowledgement of Minnesota.
STATE OF MINNESOTA.
LEGAL DEPARTMENT.
HENRY N. BENSON,
Attorney General.

! OSSICtdTy " otdtcs
In compliance with the provisions of
section 46. General Statutes 1923. fur
nish you herewith a statement of the
purpose and effect of proposed amend
ments to the constitution of the state of
Minnesota which are to be submitted to
the electors Of the state at the general
election in 1880. in accordance with ceS-
tain acts adopted by the legislat ure at
the 1929 session thereof.
F, PROPOSED AMENDMENT NO. I.
By the adoption Of Chapter 42s. 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 stakeholder in any corpora
: ton. excepting those organized for
the purpose of carrying on any kind
. OF manufacturing 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 banking or trust corporation
or association shall be individually
s liable in an amount equal to the
amount of stock owned by him for
all debts of such corpora ton con-
tracted prior to any transfer of such
stock and such individual liability
i snail continue for one year after any
! transfer of such stock and the entry
thereof on the hooks Of the corpora
ton or associa ton"
The Purpose Of the Proposed Amendment:
The Constitution, as II now stands,
makes every stakeholder In any corpora
n
purpose OF carrying on . featuring
or mechanical business, liable for the
debts OF the corporation, II 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-
dillon to any sum that he may owe the
corporation on account OF his stock. The
purpose Of the proposed amendment 10 TO
authorize the legislature to prescribe and
regulate BY law the liability Of stockhoid.
srs or members In all orations IN.
Guiding 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,
" adopted, will be TO abropate the present
fIxsd rule OF stockholders liability pre-
scrlbed by the constitution, except In the
case Of stockholders IN banks or trust
companies. and to place the matter OF
prescribing anu regulating the NSbttty
Of stockholders In al corporations, CO.
operative eorpora atoms or associations
created under the laws Of this state lex
cspt banking or trust corporations or as
sociatlons) entirely within the control Of
the legislature, subject to change from
ftns to time a the legislature may see
~.
Stockholders IN banking or trust cor
perstions or associations will remain, a.
they now are. liable In an amount equal
60 the amount Of stock owned by them.
The ballot used at the election SHOULD
have printed thereon the following: