Case Information
*1 TEXAS OFFICE OF THE ATTORNEY GENERAL OF AUSTIN Xr. R. J. (Bob) Long
Attentioar
Dew 8lr:
upon the 08pt10aaa
rolloue I
nt, lnterprote the opln.iolt l e b o- ahiene o r pElsm% uneer wh5 lte IeBvo PO- ilt*tutee lo amndmnte ahartere one, meok- abe- no p ;aLu+gktook to par ~81~ etoak. The rtternwm of rir80tee are contended tht Opla- ation loll II er o-5792 doe8 not 8pply to aorpowtione tmr under the gewrrrl uorpor8tion Iltatutee. 0rgbnit0a “we, tamreforo, roqueet 8[L oplnio?a rrar your ii a oorperatlon organieed depertmeut rdvielmg w uncler tha gonor aorporatioa lere with toek of ao par value cw oonvert its teak ai no p value alto etoak 0r par v8sua.’
Oplnlai lo. 0-57pa did l peelileelly hold th8t l liie eorpcy uhoee ebme OS l took we without nomlael inew& er per velue ouuaot le6ellr eoavht rueh etoak late etoek 01th nminelor per velee. Siowvw, in rewhiag thie 8onalueion, the l8ue govornimg aorpomtiene ln gene-1 uere aowlbro4 bnd ppllod, vlth raIuwno* thereto. Sm l tatute rettully roferrod to belm# Artlola lS#!h, Veraen' Armoteted Civil &at- utoe, rhleh made:
‘A4 prlwto oar ration far profit, 08hor tr w.re4 to aoadwt a balIking t;~m8;e l utho rleod ah ere ulth pm o r we0 vd, o r l tithmtW1 %uw or par velue,o both,wr, byvoto oithoholdo~e ef 6 wjorlt~ ef it8 outetardlag *to& entitled tovotert~uraulYotirrqo~t~go~l wllod uel bald ior purpoer, amud it8
meeting ohertor 80 a8 to dmafw it8 e&roe OS twk 81th par oriaer velue,op~eWee oc sUeroe there of, late the came amber or -toa Urger or trll- velol, or amber oielmree~rlthou.aamlm~orgnr proWlo thetell Wee Jauyau elee* allbe ehmgod oa the em8 brie, or 80 a8 to q it8 nm&nelo~pIvelw, er~sleee ehuweulthout or olaeeoe therotor (thorwf), isto a larger w am8llernumber0reb8roe~lthaataamuwlegu?
value provided all herqe )a rpf otu elaee ehllbe aheagd orrtho umebaelas uUrpovlde& further that the pr*ter*ao*e, rQht8, llmitetlaae, plvlleg*e uwI r**trlatlone tedorapoeod ulth reepmt to uy ehrre 0 outetmUag took F
ebll not k impair.& dlmlaWw6 or abtm@ rlth- out the o-eat of the holdor tbwmoi. Uhouovmr anr l wh aaeadment eWl1 be m4e efieetlvo, ll the eharee withper or iroe mlue oftb cleee er olaene peoiilod lauldundaeate&llbedeem- d for all urpowe ha*0 ken aoavertod, ea the bee18 in w Ip d amndmat etated, elwoe vlthout aeminelor prvelue of the oleee roleeeee epe- aiiled end all of the ekeroe wltheut a-1 or par v&e ohang e d into l larg er o r erller amber of eharoe without neminel OR per velw ebellbe ded r0r ll urpoeoe to beve beoa aonyorted on the bee18 la ea 4 r nmaumnt etato4 into each larger or emller aumber of Wo8 ulthd lwmlatl Or pe2, *3 velue,,md the ccrpcratiou ehell, ln urltlug, notify all holder8 ci eberae of etoek of the oleee and lpqll theroaftec, w etietae effected (Ufoatad) uhatwvor any certiflacrte for aw wh !nrae ie preeented Sor trmufer or uabcsp, 6@ace2 the nmi, md in it8 plaao, ieeue, on baele ln eeld arand- ebat etatd, a wu urrtiil8Me, vhloh -11 eoafom of Article 1538b horoot." the provleione
Thle rtlole.doee petlit uotworelon of par v&u@ teak i&o stook OS no pr value. T ho r0 18 no l uah l uthoriutlon to t,h m toatrary; le, fo r tha coavoreloa ol etook of m per ~81~8 isto teak of per velue.
It 18 elemsnte4-y that all the pmbri of l so r p omtfoa we derlvod rxeluelvel~ from .the Coartltutlan.* tatutre.
slmao ther6 18 no pouor glviog l asrposcrtlon th6 right to ooa- vert l twk of no per vUuo late toek of pu vaLr#, ue gr6e with pDup dopertmat ‘8~ l.ntmpretUl.olz a? our OptgLon Ilo. O-579a.
Weed on tha foregolag, we ukvuor pnr queetlan in th6 neg8tiv*.
Vry truly .foure ATTORXRY oxlmL0?mKA9 ~/gigcdor Robert 0. Kooh Aeeletmt RoKrdb