Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-10-23
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 1890 Election To-
gether with Statements of
Purpose and Effect
Of each
Prepared by
Henry H, BENSON
Acknowledgement of Minnesota.
Addressed to
nike HOLM
Secretary of State.
STATE OF MINNESOTA,
LEGAL DEPARTMENT.
HENRY N. BENSON,
Attorney General.
St Paul. Minnesota, February q. 1890.
HONORABLE MIKE HOLM.
Secretary of State:
Prepared by
Henry H. BENSON
Acknowledgement of Minnesota.
STATE OF MINNESOTA,
LEGAL DEPARTMENT.
HENRY NJ. BENSON,
Attorney General.
ST. Paul Minnesota. February 27. 1890


HONORABLE MIKE HOLM.
Secretary of State:
In compliance with the provisions of
section 46. General Statutes 1928. ] 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 to be submitted to
the electors of the state at the general
election in 1890, in accordance with GER
tain acts adopted by the egisature At
the 1929 session thereof.
PROPOSED AMENDMENT NO. I.
By the adoption of Chapter 429, Laws
1929. the legislature has proposed an
amendment TO section OF article 10 or
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:
'"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
porations or associations, however
organized Provided every stockhold-
or association shall be individually
liable in an amount equal to tho
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.
ton, excepting those organized for the
purpose OF carrying on a manufa cturino
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.
dtion 70 any sum that ne 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,
II adopted, will be TO abropate the present
fixed rule of stockholders liability pre-
scribed by the constitution, except In the
case OF stockholders In banks trust
companies, and to place the matter Of
prescribing and regulating the liability
OF stockholders In all corporations, CO.
operative corporations associations
created under the laws OF this state lex
cept banking or trust corporations or as
sociations) entirely within the control OF
the legislature, biect 10 change from
time to time as the legislature may see
ft.
Stockholders In banking or trust cor
poratlons or associations will remain, as
they now are, liable In an amount equal
TO the amount OF stock owned by them.
The ballot used ar the election should
have printed thereon the following: