Court Opinion

ID: 4140843
Source: CourtListenerOpinion
Date Created: 2017-02-18 03:03:51.026501+00
Date Added: 2024-06-11T14:48:43.976855
License: Public Domain

I

                    OFFICE      OF THE ATTORNEY                 GENERAL    OF TEXAS

                                                       AUSTIN

                     Tou   requoat         Ml*    op                      lpartmant on tba
    quertion        e~tained          in   pur     1                       , quoted below,
    aa   fOllow~(
                                                                          e proper bash
                                                                           wiu Lon8 Leaf

                                                                   lLo h lr ta
                                                                            o xr ep o r t,
                                                                   to show thet it ua~
                                                                  011.I)#ooatempl~t.84

                                      nstlon 0r the oorpor~tlon~e traaohbe
           t&   Xi&t     bi80108e#                that  it h & d in lXOeIa  Of $&~.oo
           in l eooant8 wablo                    la at the olose of btmlnoar     imaombar    5
           194t    and #tN!,714.4t                  shown aa *To ‘?tookholdor8   Upon ?inU
          49&.tfoa~~             .”
               l.
                           l.
                                                                                                      :!f;

                 "It    la our opinion             tha     ttm     debte     cf   (L oorporatlon
      entSrlli          U atate        Or   1iqUidatiOn          IBUd    firat     be paid   and
      any illstrlbutlanmade to the etookholdors first oher+.yd
      a&n8t            SUIF&‘IlUS balM808,           Nld    apply      the    rmainlng
      diVidOnd8 a&Eat   the ~Ut8tMMtill~mpitd   8tOOk. If thi8
      pToo*dure bad boon followed, approximately .?365,000.00
      in outatandinr,capital 8tiOk would i!avebeen available
      for oocalderatlon in ooaputing the amount of franohlae
      tax paysblo.

           "In vie+ Of WS 8bOTe f#IOt8,8hOuld t\-18d~~tment
      acoopt tileminimus payment 0r #20.00 la full 8ati8raotlon
      of the sorporation*a franohlac tax or ohodd ua oonpute
      the tax upan $36t,914.49 ohom a8 due lTa Btookholdora
      upon Flaal Llquldatloa*9a
                 Uo -1    8180  oonai6u                   in this oonnoetion tbe letter
ot Iionorable       J. L. Lookott, dated                  July 26, aa follow8,

            Vti   oaaulon    for thi8 letter  io a letter Jwt re-
     oelreb    rrom ths offlar of the seorduy      of State dated
     JUly   24,  1042,   OOpf Or uhloh  i8 &ttWh~b  hereto.
             “In       oonnestIon           with ym,r oor:d4aratioa                 of   the quaa-
     tiOU    8UbMittOa            tG   JOU    by   the     SeOTewr           Of   d&O      WO UOuld
     like to h** ywl take Into oau8Id*r8tIon the r0Li~
     faota, afflbvit or other verlflo~tion of ubloh will br
     fUd8h46   t0 YOU If 80 d4~84~84dr

             ~Ltqu;datioa aC Wlu                     Long Loaf Lombor Oompuy had
     bea3 uodor 0008ldorutA0n, tie ia h*t  qroed  upan amme
     the stookholdaa, for rorrtb8 prior to the and of the
     year 1948. At l me+tIly      of  the  dookhol4ora     he14 oa
     or about Uovembu 14, 1942, llquld~$lon wu a@ead upon
     but formal a&Ion tharaon Ua8 not Won             beowaee the
     roqolrwY prior notloe of the me&lag          fad aot boon gltan,
     eo tbst lmmmdldoly    aftor    djournnent     or that mutln6
     propor notloo ~88 i8aUed far a mw&In(r on %oember 1.0,
     1942 nt whioh all of the otook outetaadi~ w&a rot.&
     for iiqul6nitioa  and eir~olotion 0r the oorporatlon to
     ba 8irc0td   rorthwith.     Tbueafter, and prior       to Dooam-
     bar  St, 1942, tha corporation lstually @old and deliitorti
     itn mill, wh10:x hd been ~eTiOU84          8hut down: it8 lo&W
                                                                                        . ,

                                  ,
       operations had bssn prorlou6ly dlsaontlnued. The
       entire llquldatin~ aI8trlbutlon of ~1.030.000 In
       or8h was paid out after rdoptlon of t&e rkolutlon
       for liquidation and diuolutlon at:dafter male of the
       mill, ate. Aa tiriddt     illaorpll8nea with ReTieed
       Statute 7097 8howI?rgthe oorporatlm wa8 In lotual
       dl&eolution was filed with the frmohl8e   tax report. ”

           From flu Information before un, there is no
quaatlon but tht the d&r Lo      Luf Lumber Conpany 18 In
the prooe8s of bona lid. llqul3 atIon, wlthln the purview
of Art.lol*7097, v. R, c. 8. ThI8 bsla(!true, the sole
quutlon for our a0t0wnhi0n      18, what 8m0unt or frM8hi8e
tu,  ii any under the hw,   d008 t5e wla  Lanp, LOat Lumber
Coqany ow under Artlola 7091, V. F..C. 3.. reading a8
iollowst
           @Tf a oorporatlon  I8 aotually in pro0088 0r
      llquldation, suo!3oorporation 8hall only be roqufred
      t0 pxy 8 fmOhi80    tax oalsulated tmon the di.ffmenOe

      t0m     rrPOUn3   Of   Oapiki    8tOOk   i88Ud      ad      88    to    iha
      aiwunt of 1lqulid~tIa dida d lotully                        paid       an4 that
      8UOh   OOr~OZY~tiOtl 18 &.      (D   aOtrdJ. bon8    iid0        8t8t4J   Of
      llqulaatlon." ( 3q lh ul
                             l8
                              a a o d)
             ?IadO0m it helpful in UI lffmt to ~IVO          at 8
OOrreOt M8w8r     to thi8