Opinion ID: 523161
Heading Depth: 2
Heading Rank: 4

Heading: mississippi constitution

Text: 32 The bank also argues that the Whatleys failed to organize Whatley Farms as a corporation within the time period allotted under Art. VII, Sec. 180 of the Mississippi Constitution. 10 This failure, according to the bank, terminates the legal existence of the corporation. We have found no case addressing the proper use of Sec. 180. Nevertheless, to the extent that the bank is asserting that Sec. 180 precludes a finding of de facto corporate status, this argument is plainly wrong because Mississippi courts do recognize a de facto corporation. Even without divining the exact meaning of Sec. 180, one aspect of the section is apparent: Sec. 180 is not self-executing. The state would have to bring a proceeding against Whatley Farms for failure to comply with Sec. 180, which of course did not occur here. Therefore, even if Whatley Farms was in violation of Art. VII, Sec. 180 of the Mississippi Constitution, Whatley Farms's corporate status cannot be collaterally attacked by the bank.