Case Information
*1 OFFICE OF THE A’170RNEY GENERAL OF TEXAS AUSTIN G- .
AOKI. if. J. Lawaon
seoretary ot State
hunt In, Texa8
Dear Sir:
Your letter ot opinion or this Deprtment, .
&mated to sbo9e nsmed 0
ahortor *or0
fo oopy or anal&~ of CNr as8ootatlon rhall remain in of fifty year8 from data beeof, and , under tNa ehartsr hare all the p the law8 erirtlng in: that may oted the State of Texa8.
*This lnstrtnnent HRLB mwar filed with the Seorebarf of State, but we hare been furnished with a Oertlfled oopr amendment, end we am attaohing it thin letter. B I
~a. vi. 3. Lawson, page 2
qou will note iro;lo the last ameadmant that tNa
corporation does a fraternal benefit insurance bmlness, and as such is under the supervision of the Inauraaoe cwullsslon.
-The question whahioh ia raisa4 by this altuatlon is whether the Slllne of the amandm~nt with tha fnruranoo commission extended the oorporate srlatanoe fifty year8 frou May 28, 1937, w whsthar It is naourrary for oorporablon to tlls another exWi%si~n oi existenOe ulth thi e ot~los. in your opinion NO? ,,o-3254, Tou wlli reoail that
you held the Texas Indspeghnoe Life Inrurknee Come oould not renew its OOrpCUTit8 &Ki8tOROe under tb, prOYi8iOM of Artiole 1315 a and b.
*'We should like an oplnl&n ~TW fan as whether the ohwter oi tha aorporatioa I8 now in good 8ttukdlag under the 13uper9i8lon of the Iasux~oa~ Do rtmant 80 that no further aman&monta no84 be ill& l.n thr e otiioe, or whether the ohartsr &dmte6 by this ofiioo haa explrml by it8 am &@69i8lMI) Md i&et OMW ill aOOO~UlOO tith th. 1315.'
proY~8ton8 ti Artiole Aoccx~~panylag YOUX Xeq\iOd ,X0 8 ghOt@8%8tiO OWrtiiiOd g8py of the 4aaendarent dated the tint day or June, 1927, tiled wlah tha Seoratary or Stat0 on Inno 29, 1927, and with the Do art- ment oi In~uranoa on the 16th by ot Jana* 2927, and a oertli P od gthotortatlo copy oi a later aamndaurt, dated 13th day of May, 1937, illad In the Departmat oi Inraranoo. A8 to thla later aaandment we aasume that it h88 boon prrseatsb to four ~Departsent tar flline.
The 8tatute8 ralatin& t0 amending and Wtadtig Chartera Of private GOIFpOra~fOtl8 St&k aa the One here fnYolVed ore &tloles 1314 and 1315, VeI%On’8 Annotated clril Statutea.
Artiole 1311 from the R. C. 8. 1925, fn part, readar “Any private oorporatim mpnlmd or inoorporateb in thi8 title, mar WSnd OX @hang* for my purpose mentioned lts charter or aob ot lnoorporation flliag, authentioatob In the manner as the orlglnai OhaFter, suoh ammlmmt8 OT &ages with the Sooretary of liltate.* *3 .san. W. J. Lawson, page 3
Artlala 1315 said 8tatutes praridalrt Worposations created for the oupport of benmlent, eherltable, eduoational or rrrlssloaary undertakinjis, the support of nqp literary or soientiflo uuderteking, the wsintemnoe of a library ) or the pronotion or palnting, mueio or other fins arts, wh&se chartor h&r expired by limltstloa, may revive euh ohartor with all the prtri- loge8 and i~uaunltfe8 am3 rlght8 of property, real and psrronal, exorolsei7 en& held by it dt the date of she ezpiretlon of its '#i& oherter, by filing, with this oonasnt of 8 majority of fte rrteokho,ldem, a now ohartr uudcr prorislons of thin ohapter, roaltlng therein 8uob original pririleges and l0timiitie8 8nU right8 of property, and by filing therllnrlth a oatlfled oopy of such ortginal expirea ohart*t.*
Before engaging in 8t8oomrion ot tho quution ralaod, pM8umab~y laflaenoed by Orrr heldting in o ianion O-3254 oled you, m oall your attention to the faot e hat in raid 0pi~i0.a we weme disouasina; 8 OOrpOration whose 8Ob bu8iae88 and uot up ma nithla the rsqulrexaantr of Hotme Bill 903, Qrd Leg. (Chap. 8a, Title 78, R.C.S.), oarr on a stat* af. mittually prctteotlng or lnrrru’, the live0 or ddr bu8lnus %i imBbU8 buy a8808iSJilOilt8. Such a oorpontiQa;~wu raqulred fta to eo1a~4 with thcl prOvirbXm 6f tiil8 bill By Setitiioa 14 of
tha law or hats l%a ohuter, &paaimd under the genmav~l law,. repuled m rat&cod. 'i'h18 law, nD pointed out in opii3la0, oapld not aperats to rapeal or ruoke an sxlatiag ohartw granted prior to ltr expiration withwit atiering pre~lou5ly lt an opportunity to wmtinue b\ulnasa under the aeu +egul.atory 3Aw. The opinion is not appU,cmblr to the Oer oratloa under axdduation here, whioh, by @m plairr.~prQti8 on8 Ot it8 i opratss under Chapter 8, Titla.78, of the statute8 ahartu, applloablo to fratarnal benefit *oolcsties.
32-0 hero rmhsr demBrlaLAed .rrcmth8 rOOOrd8 ill
your off100 thst shortly after the ariaotmtmt~ of Chsp. 113, Aots &9X3, an act def+kLfng a fmternalbmaflt 8ooiety (art. 4620 3.C.s.). en afffdattt uaa iFled reocagaiaing the applieablllty of that law to the oorporstion; ad w* furthar au8uam that under the pr@risioxae and aamndmento Of the 191) aot au thea and presently applioabla to frateraal baneSit aooleties the Xasuranoe~Departmes&t har rooogalmd lte axistenae and eo oonduoted lte auperrls%oa, duly issuing to the order aa annual lieenrs to oofiduot Its bu8fnSCe as a fraternal buttilt 6oolsty.
Briefly tmoing the history ot chapter 8, Tltle 78, appllaable to fraternal benefit a~sooletlona, the flret mot passed euthorlxlng their lnsoil;oration 8s suoh and d8tlalng fraternal beaefft s~~istlma mm by the 26th Laglelature, Aeta 1899, Chap. Xl5 This law ,nrovlCed In Subsestlon 6 of See. u that srtlolea of incorporation should Btbte the terre of oar- porete exlstenae, not to exoeed fifty yews, and required that the charter be,filed with the Sebrnknrp 82 Stata. 14 further provide% that suoh oharter may be amendo% et any tlm by f1Xn1~ with the SeoretaPy or state the derlred amndmente,lyey$ry eohnowledged, ee requlrsb In obtalnina ohartnr.
wcmW, this as&Ion provided for the ikoorporatlws and Imuanse of ohvrtera to fpaternal benefit soaletles; In aeotlon 2 thereof it provided for the oontlnulaE ofb~lhesa all aeaoelatlons'eomlng under its provisions then doirrg huslneac but plaaed said a8so6latlons under the rups~rfnlon cf the kaalrs~oner~.of &?urarrce in reapeot to tllins annual reports and m&e. thr;a 0ubJwt to sxcmination and certain regula- tlona by the Coemlssiom&'.
Ths foreSoin&aot was repealed by Aots, ot 1909,
t%npter 36, First C~lls%~Sersloa, 31st Legislature, belhg l iDore oovaprehetis~ve QRO and in Scot+ 14 thereat it l servd 80 those corporationa then angaged in the bualnur ai? OS 8hO right*, powers and privllegss exeroieed poarasaed under its charter OF artiolea oi amooietion, not inconrl8teat with the eat and offering to'ruah oorporatione the right to reinear- porete thereunder. Theas were not required to reineorpooratcr eor required in their ohartex to adopt the pr~vislons for Qr$eedlg n#r assoolett Oi36.r
Tke Lcgls$attx~e in 1913, by an sot of the 33rd
Le6lrlatww, Chagtor lJ.3, repealed the 1909 not, whloh later euieotmeot, with subaeqasnt amen~ent~ to tsrlow 8eatianR, constitute our'grosent Uha_ater 8, Title 78, V.A.C.B, SeOtlea 13 thereof, appearing in Temmn*s en Brtlole 4839, atibdanbidly bxpreaeeta the eem purpoee and hes the taaine &teat a8'SW. 1C of E,Ot of 1909, In prcvidlng thet any oooletl aaaagdl at the tf.xe in trans$tatlng bualneas In the State say eZavQi#O aill of the righta, powers and privllsgos theu exe~'slead or
OSS~S~~ by it w%e~ its charter mot lneoneistent with the 1913 sot, lf 1noorporatcsU.
P
Iian. x. J. Lawson, pa8e 5
It eeome oleu iron ths rorsgoing examination Qf the law epplioable to fret6rna.l beneflt sooiefles et dlff~ent psslads throughout its history that such corporations as the Grand Lodge of the Order of the Sons of Her&m ia the State of Texas, iae@y orated ior the purpose of a benev’clent eduoa- tionel or cQgr.i e able undrrtekin~, prior the sot of 1499, were never lnts&ed by the Legislature nor required to aerge their rlghte aad priyile(t44 granted under Chap, 8, Title 76 of our innureno~ laws.’ .The lawaaki~ bcdlee epparently reaog- nlzlbd that aor~~aticus w!mss purpoeee eye ohulteble bsneyo- Le.nt say aoquite rights end traheeot business without the doing oi en lneuranoe bueinaes. A glene4 et the purpcee provision4 of the original oharter of the Order nlth rhioh we are ocnaermd ehcwe the dual purpose, to pap health and death benefits to mam- bera ahd their beneflolarie4 en4 *to ersot and maintain e hum for old aad needy members of the order end for the erphans of members of the 0rZer.C
It will mther be noted that Ayt. 485 R.C.S.* 30 of 1931jk!bt), exampt8 froks lte ~proyle one oertelu (m3. P aooietiee einllar to .@and ox subordinate lodgee of Mesons, Odd Lfsllowe cm Tni~hts oi Fythlae, which do not is6us~insurence eertlficetea. Furthers&ore, any suoh oorporaBion nmy forielt it4 anmel ~permit to do mn 5mlnanoe buelnesa es fraternal benefit rooiety upoaehy numbar ai grounda eat out uader Chap. 6, Title 78, of the lnatxranee laws anb et111 robin ltr corpomte exlatence under thn proylalons of its aherter issued by the Seoretarp of State uader the esarrel law.
Trusting we haye rmde ourselves oleer with respect to &lstlngulahlng between typa oorpoPetlon In- ~olycd 1:: our opinion ED. O-325b end the one here pr4~4IOM for oonel6eratlou, we ‘pr+ueed to the real end o~lp queatloQ with whloh you ara oonoorned, towit, whether the charter *anted by the Seoretsry of State has expired by ita own terms W QIlSt be ramrod 1.n aooordanoe with the provisicna of AstiC. 1315, I?. c. s. 1315, supra, prmides ior the revival o? Rrtlole
ohmtera of suoh aorporatlone oreeted for the suppcrt of beheyo- lsnt, oharitable, eduoatlonal or miaeiontarp undertakinga, eto. *6 Hon. W. J. Lewmm, pegs 6 approved ehl eddmmsed to you undw
in our opinion MO. 04,085, date of Oat. 16, 19&l, we held thet the ohartar of a aorpore- tion areated under the ae%e purpose aleuse may be revived after five years fraa the date the charter had expired. Opinion Eo. &&OOJ, therefore, ia applicable to the corporatfoli under eon- rideration.
It is thererore the oplnlon of thla Ds~rt?nent
that e oorporatlon ohartared for the aupport of any benevolent, eherltable, eduoetlanal or lalssionery underlieking, and whioh operstes subject to Chap. 8, Title 78, F..I.C.S,, aLo a l’raternel aooietr, ia not euthorlaed to extend the period of its benefit’ oorporate exlatenas amenUment illed with the Iasuranoe Com- miaeion. A oompllaaae with the provllrlo~ of Chap. 8, Title 78, nil1 not sutfiae as a oomplienoe wlth the general lewu for main- taining its aqrporate exlstenoe ar e ohmlteble or benevolent eorpmatlon. The charter of the Wend Lodge of the Cmler of the Sanu of Herman in the State bi Texas having expired 88 e or ohultable oorporation, It nay be revived in eoeer- benevolent danoe tith prorisionu of Artlole 1315, Ravlsed Civil Statutea.
Yours vary truly