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Untitled Texas Attorney General Opinion
V-613
| Tex. Att'y Gen. | Jul 2, 1948
|
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Case Information

*1 Ron. M. B. Morgan, Commissioner

Bureau of Labor Statistics~

Austin, Texas Opini,on No. V-613.

Re : Legality of chartering ‘a corporation for the purpose of operating an employment agency.

Dear Mr. Morgan:

You desire to know if’ the statutes of this State authorize the creation of corporations for the purpose of acting as an employment or labor agency.

The statutes regulating employment or labor agencies define such an a,gency as “any person in this Stste who for a fee of~fers or attempts to procure or procures employment for employees, or without a fee of- fers or attempts to procure or procures employment for common laborers or agricultural workers, or any person who for a fee offers or attempts to procure or procures employees for employers, or without a fee offers or at- tempts to procure or procures common laborers or agri- cultural workers for employers, or any person, regard- less of whether a fee is received or due, offers or at- tempts to supply or supplies the services of common or agricultural workers to any person.” V. C. S., Art. 5221a-4, Sec. 1, subdivision e.

Our present Constitution forbids the creation of corporations “except by general laws” and directs the Legislature to enact ngeneral laws. . . for the creation of private corporations.” Constitution, Art. XII, Sets.. 1, 2. Thus, corporations can be organized only for the purposes specifically prescribed by general law. It is “The policy of our law to limit the right of a corpora- tion to the specific purposes authorized by statute.” v. Routledge, 175 S, U.. 444, 447, affirmed 111 Staacke Tex. 489, 241 S. W. 994.

“A charter must specify the purpose for which the corporation is to be created. This should be done *2 Hon. M. B . Morgan, Page 2, V-613.

with sufficient olearness to enable the Secretary of State to see that the purpose specified is one pro- vided for by the statute.” Joknstcn v. Townsend, 103 Tex. 122, 124 $. W. 417. Corporatirms I 10 Tex. Juris.. 622, sea. 31.

Now the Texas Employment and Labor Agency Law might be broad enough to empower the Comtxisslenrr of the Burrau of Labor Statistics to license a corpera- tion acting as an employmant agency if co rporetions were authorized in Texas to so act, which ins a question we do not decide. But a most careful and detailed study of our statutes fails to aisolose any authority in the Secretary of State to issue a acrporrtion charter for such purpose. In the absenoe of such an authority the Secretary of State is not authorized to issue such a charter. Ramsey v. TM, 95 Tex, 614, 69 S. W. 133,% 93 Am. St. Rep. 875; Empire Mills v. Alston Grocery Co., 15 S. W. 200, 505, 12 L.RbA. 366. And, in order for a corporation to be eligible to an employment and labor agency license “it must be authorized by its charter,, to conduct the business for which a license is sought.” Licenses, 624, 0 33, n. 15. 53 U.J.S.

A corporation oannot be chartered, under the present Texas, law, for the purpose of oper- ating an employment or labor agency.

Yours very truly, ATTORNFX GENBRAL OF TBXAS .

&gL?&dL-cJ 4 Rv David Wuntch Assistant

APPElDVBD :

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Case Details

Case Name: Untitled Texas Attorney General Opinion
Court Name: Texas Attorney General Reports
Date Published: Jul 2, 1948
Docket Number: V-613
Court Abbreviation: Tex. Att'y Gen.
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