Case Information
*1 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
‘i
Attmtlom Mr. 1. J. (Bob) Loa
Dwr’Slr;
x month8 period granted by the rqv-ioal of the oharter of caid rUrpirh06 8di8r80t0rr 00rpotiti0n ;:::, o? paymont of It8 .orpital rtook to thlr of-
rioe namely on Earoh 31, 1944. Tbe oorporatloa E OOpJ Of whloh i8
a180 tiled 8n ill8tTUR~t, at-
taohed to thi8 btter, QrOpO8iU8 t0 revive .a& *2 extend the Ohrttrr ua0r or Arti018 th8 proririon8
i318@ ud h'tiOl0 tilbb 8d &dd th8 r8Quirrd flli~& t80 ?OE tiliki6 8UOh ill8trUWBt in the 8U8 O? $90.00. "8. x8 thi8 dOQmWt ill0 *in In8tmmmt vita rab rrtend tin. oorporatr
0t MU 80rpontioiw ArtI 1330, V. A. 0, d., OrtablIrher 8 method Ital 8tOOk whereby the oa of 8 oorpontlon uay be Inoreased nter 8fl4 prorider, i! the illlag of orrtltloato of 81h, iaorearrr with tb 8eontarg 0f State. ?ollowIag thI8, ArtIO1e pr0r1d.8; 'fXb 0180 d thick. b7 tb 8tOOkhOl68r8 Bay the unpalb portion o? an Inorearr oi rtook within two par8 ?rrm the dbtr 0r tha tll* or the OM'tifiO8tO ill tbr Ofti O? the Oi'irIOre880 Sooretarf 8trt0, 0r ruoh ooapany obrrtor rOVi8iOn8 Oi ArtiOle8 8ad tb b0 fOrfOitb6, 8haii th8.8aQ8 I8 8hal 1339 t0 1aa iIlO1U8iV~, &OTWlt Oa88 Ot t&e o rmtlon oorporatlon.~ It will b8 notloed that thlr Artlola, talluro to pay the wqaI4 portion oi thr Inoreare 18ad8 tort*Iture of tbs oorporatr ohartor rather tlman to a m8ro fortelturo ?f the right b0 buIfJI888. Ia tbI8 OOmwdI~ ArtiOleC 1339 an6 1340 re8peotlvelr provide:
aIn oase8 ot the tallure to pay the unprld. portion ot orpltal took, and to make proof thereof to the Secretary of State within two year8 tram the data 0t tb ot'the ohartsr, tin obrrter ot tiii euoh oomp&ny 8he1 beoome tortelted. Suoh forfeit- ,uro 8hall bo ooarummated wit&cut judlolal asaertain- ment by the Seoretary ot Eltrtr entering upon,the ', margin Of thee le4Qer kept la hi8 orrio rela+s
to 8uoh oorporation8 the worb, *torteltsd,~ giving the date snd rOraon thoretor.* *3 . ~. v,‘.”
: .~,. $jXdney. &tbm, Page 3 JiOi.
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"The Seorotar7 of State 8hrll notify 8uah aorpor8.tlon br nmlllng to the po8tottIor n8med rlnolpal plaoe ot btulne88, or to any
a8 it8 O@ Of bU8irr888 Of uoh OOX!$KW8tiOn, p P Oth8r In It8 oorpomto IUY, 8 w'rlttra or 86dnrre6 of 8u8h Of tk dat. ad rinted 8htOmbUt trot A noora of th0 48te and trot of ortolturo. 8uoh not%08 8hhrsl bo kept by 8UOh oftIo8r.W .Wlth n8pOt to th8 revIv81 a? Obarter8 whloh hrw forfeited ia thi8 manner, A&i0148 and 134s rerrpeot- born - IV81~ provrao;
"The rtdokholderr o? 8ny swh oorpaatlon who88 Oh8rter h88 been 80 forfeited, rho ah811
wIthIn rir InOnth8 tromthn date of suoh tortelt- ur8 and not thrreattor, pay la full the unpaid
OaQital Of 8uOh OOmpany 8nd turnirh to tb proof of ruoh fiat of 8tate a8 required
Seorbtary horein, 8&l in 8ddItlon rhall pay the Seoretary 8tato a8 tear belong& to hi8 ottioe, the 8~5 five dollar8 por month for 88oh month and trao- tlooal part t&reef betwren ths date of tortelture and settlement, eh8ll be rellsved from wah tortelt- ; aaid ottioer 8h8llwrits on the margin ure eald ledgar tbr word 'revived,* giving th8 date th8r8Ot." (Xmphaele added)
-It the rtookholdora tail to Oau8e the oharter power8 o? 8&U oorpontion to be revived, the at- fair8 euoh oorapauy shall be admlnl8terad and wOUh6 up a8 On di8801Ut1011.g Artiolo 1387 provide8 in part a8
Likewire, tOllOW8: "A oorporatibn 18 direolved:
" . . . .
'3. Br tortslture of it@ ohartar wlthout judlolal aaoertilrsent under any rpeoial of law . . .* provi8ion *4 BOB, aianey Latham, Page 4
‘ The ?allUrr to 8ak@ a timely payaent of the un portion of tk oapltal rtook of th8 oorpontlon in qu88t 8utomtIoal1y forfeited tlte oorporrte ohartor. t%O 8ktUtO8 QSovida but On. IOU&I oi rotiti~ l ohrrtrr 86 torfoited--br eat 8rd tund8hin& prqqt Ot 8llDI dthin 81~ maklu the Q8 date of tori*lturo. i&TOOVOr, 8Olrth8 trO8 t c th. 8titUtO8 prorid. that uah myment md pl'OOi M8t bo mad. within 8UOh period 'and not thoroattor.* 3% iartant oorpontlon tii0a of pay8ent afto r thb l xglration Of thi8 plS'Iod, end thu8
root s 8ibd avrik it8Olt. tho OBO mthod for n+iViBjJ it8 ohartrr. we are oamp43llad.to oti00iua0 that tbr oorporntlon OOB8OqUOBtly, it8 OhrrtW OalinOt bo FI- ha8 born ?iB~lf di88OlT8d ud thrt rived by your l oorptw ad ill iag th8 proof of tine1 'payment, Your tirrt quertlon 18 8n8worea in the nrgatIv8.
fr om reOOr&e in your O??iOe 110 baVS l 8OertRiBOd that the OOlFQOZ'8tiOB in qU@8tiOB OB AU&U& 17, 1937, -8 OtmrtOr@a ynar8. The 8tookholdbrr of tho oorpon- for 8 pri0a fifty tlon have now parred a rrrolution l 8klBg tlmt thr olmrter be iOr a QOriOd Of twenty-fir0 yeRr8. They are 8abk- mr8iB8tated” Ing Bar0 fou approve md tile thlr rerolutlon on&or the pro- 1318(a) and lTilS(b).. Theo@ Arti re8peot- l181OM Of fitiOlb8 iteiy prPvia0t WSUbjeOf t0 (L fin&in by,the SeOWX~ Of atate 88~horalnarter prov t dOa, my prlvata oor- poratlon organized or inUOTQOT?It8& any purpose or purpose8 l uthorired under third Title, at 8ny withIB ten (10) year8 prior t0 tho Xpir8tiOn of It8 otnrtor, or any ertenelon thereof, may ex- tend 8uoh oharter and the oorporate sxlstenoe of rruoh oorporatlon for an addltIonal period of not to ezorea fifty (so) ye*ra tru the rpIntIon date oi the original ohartbr, or any erteorrloa thereof, with all th8 piViiOgO8, power*, Immunities, right by it8 ootporate OW, end right8 Of 8uooaO8ion property, real and per8ona1, bxerolsed and hrld by it et nuoh xpiretioo date to the 8UEe intent8 IMd purpo8er a8 upon original InoorporrtIoo. Thr manner ohartor &all bo by a resOlU- of extending any euoh tlon in writing, aoptOa at any annual or spsolal moetlng of rtookholder8 oslled ior that pWQo8e by stockholder8 holdlug a majority of the share8 o? *5 :
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H&n. gldney Lathan, Fag8 8
oeplkl rtook of ruoh oorporatloB tlnn out-.
rktiding, 8uoh rO8OhltiOB the period 8pOOity or tIs8 whloh the olmrter I8 l xtonaea, 8Bd a d 8uOh rO8OlUtiOB, duly OOrtitkd by the
OOpr reoretary of the oorporatlfm, the oorporetr
8e81, 8br11 be ?ihd U& rooorded in th8 OttlO.
of the Seoret8ry of Bkto. Upon t&e baoptioa ot
8uOh z8rolutIOn thr filing .8 oortltled oopy themof with thb Brorrtary of State, to ether with of tlm SIlIng fee berein pnror hod, the f payment ohrrtor rnd 8orpomto exIrteno8 8laoh oorporatlon may be extended for th8 additional prrlod of time 8IMh XX48OiUtlOn; ThO filing tOa t0 b8 teOited mid tee any ruoh srtonslon of 8 .oh8rter rb.11 bo ruoh Se8 a8 raid oorpor8tion would be required under thn statute8 to pay in the event of To~ar It w88 then applying ior a new charter ln8tead
extsndlng It8 th8n exlrtlng oh8rter;
"Suoh 8Xt~UliOll8, how8vbr, my bo made OBlJ in iB8t8BO.8 where the Seorota of meta mhall here tamd, after prosa lave8t gation, that uoh
oor.porrtIoB 18 8OlV8Bt l ul it8 oapltel un%mp8Ired.=
nThe provl8lon8 of Artlolr 1318(a) shall mna to Bd lnoluae all private oorporatlonr inoorporrted under th8 gsnonl law8 of Texa8. Th8 prloa of ten (10) year8 prior to tb xplratlon of th8 oherter or an extmrlon thereof referred
to IB Art10k l516(a T 8hall lnoludr th8 p8rioa of time during *ioh 8uoh OOrQOl73tiOB lu haV0 OOD-
tinuea it8 existsooe und8r the provir i on8 of Art1010 1589 of the Revised Oivll Statute8 1935."
Artlair 1389, referred In ArtIolr~l31S(b), provider In part a8 tollow8:
"The existence of every corporation my be oontinuea toz ttirre ys8rs after It8 dI88olutIon from whatever oauee,~ ?or the purpose of enabling those chfirgea with the duty, nettle up it8
ettalr8 . . . *
. “-- 849 ” Im flower,, et 81. 9. PI008 Riwr 8. co., 1sa 8.1. (sill) rarerred on 0th.r ~OUd8, 340, tha AUntin 5OF!, 154 8. R. (II&) Court of Civil Appeal8 ox ldn8d the pargoro of the l 8otmnt ArtIolr@ tslfJ(a) 8Bd &15 b) a8 tO~OW8:
r$O8. tOr tbb l OrOtwSt , Wm r8aml or l xtrnrloa of ohbrtrrr prI+rt* oorgmrtIon8 organlred llader Tit10 62 or Mar 18W8, bOOrU8. JWiOr t0 th. mOt808t Of
(rOBOMl Hid l rtiOle8 ID 1939 a0 Itatut, by 8plOifiO 18ngwr)o rorldod ta ream81 or l xten8Ion tin of 8 crha r? or of l prlrrtr oorporation Inoorperoted
una0r Tit10 38 or under gemral law8. Thobaorg4noy 018~888 8pooli1o811~ reoitea tht the purpo80 oi the 1937 8Ot8 (Artr. 1318(a) sod X+15(b) We8 to
provIa for of *pr$vatr oorporatloa8~ Ord8BiZ4d under Tit10 the rwmf.al or rrtenrlon of oinrtbra
38 or the 8en8ml law8) ma tb protirlan for tha payale& of t111ng to88 tar the rmonl or l xtenrlon of thr
l 8 pSOVidO4 by hta. aerrly iBOidm61
renew or oxtrod thek oharter8,
ruin purpore of the 8tid 4Ot8. . . .a
It I8 ~181~ wo feel, that thorr Art10lw only provide a method wherrby th8 &th of a obrrter m8y bo rxt8ded wherr- O&Ark? Uy be r8BeWbd UQOB tb XQirrtiOn Of tb pri0d ct b it8 t Lb in tk8 ohartbr, *Db tht thry a0 eat purport protiao 0 8tmId man8 whereb a oharter m bo revlred or mr81n8t~todm after It stated i irfrrrntly, there ArtiOh8 potid ha8 been tOI-? I tOd. ImKl8 Of extrndi~ the Iif@ Of 8 .OorpOZ'RtiOn beyond the tiru 8ktad in no rat rttord 8M rxtenrion wham the in it8 Oblrter, &At thw O? OOF- 1Ur h8 born Out 8hOrt by tb@ di88OiUtiOa oorpont8 :&?;a~ prior to th8 xplratlon o r th e tlmo 8QOOified la It8
. QU@8tiOB b8 boon di88OiVOd. By The oOrpOntiOB virtue of Artiole 1389, it retrinr limIted oorponte xi8tenO0, ;;iruoh exl8tenae 18 only for th8 Furpoee Winding up it8 at- or th8 rtatutory foHeItur8 Tha dl88olutlon 18 thm rmult OS tb; OOrpOmtiOB’8 charter xnthsr thn thr reaUlt Of th@ *7 Hoa, sian0r Latham, Pago 7
expiration of tbs abarter. In cluob a rituatioa, Article8 1315(a) and 1315(b) oaa arrora a0 da. C0nrrquently, your is rho ansrared in tba negative. mood quertion answer8 your
Trusting that the roregoing fully lnqulrles, we are
Youra very truly ATTORXEY GZNERAL OF TXAIAS Ry (i-L&I- R. Dean gCoorhead Assistant