Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-10-16
Purpose and Hfect
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 n, 1890
HONORABLE MIKE HOLM,
Secretary of State:

81 Paui. Minnesota, February ", 1890.
HONORABLE MIKE HOLM,
Secretary Of State:
In compliance with the provisions OF
section 46. General Statutes 1923, ! fur
nish you herewith q statement of the
purpose and effect Of proposed amend
ments TO the constitution Of the state of
Minnesota which are 10 be submitted to
the electors Of the state at the general
election in 1880, in accordance with Ger
tain acts adopted by the Legislature IT
the 1923 session thereof.
PROPOSED AMENDMENT NO. I.
By the adoption Of Chapter 42s, Laws
1879, the legislature has proposed an
amendment 10 section 3 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 manufa cturing or mechanical
business, shall be liable to the amount
OF stock held or owned by him
II amended as proposed, this section
VIII read as follows:
THE Legislature shall have power
from time 10 time to provide for,
limit and otherwise regulate the liza
bility Of stockholders or members
OF corporations and cooperative cor.
porauons or associations, however
organized. Provided every stockhold-
er IN 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 Il now stands,
makes every stockhoider In any corpora.
ton, excepting those organized for the
purpose OF carrying on a manufa curing
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 nd.
cition 70 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 stockhold.
ers or members in all corporations 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 abrogate the present
Fixed rule OF Stockholders la ability pre-.
scribed by the constitution, except In the
case OF stockholders In banks or trust
companies, and TO place the mattes 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
soclations) entirely within the control Of
the legislature, subject 10 change from
time 70 time as the legislature may zee
ne.
Stockholders In banking or trust cor.
poratlons 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: