Article _____

Corporations other than municipal.

Section 1. Corporations may be formed under general laws but shall not be created by special acts. All laws relating to corporations may be altered, amended or repealed by the legislature at any time, and all corporations doing business in this Stat may, as to such business, be regulated, limited or restrained by law.

Section 2. All existing charters, franchises, special or exclusive privileges, under which an actual and bona-fide organization shall not have taken place, and business been commenced in good faith, at the time of the adoption of this Constitution, shall thereafter have no validity, and no corporation in existence at the time of the adoption of this constitution shall have the benefit of future legislation without first filing in the office of the Secretary of State an acceptance of the provisions of this Constitution.

Section 3. The Legislature shall not extend any franchise or charter, nor remit the forfeiture of any franchise or charter of any corporation now existing, or which shall hereafter exist under the laws of this State.

Section 4. The term “corporations”, as used in this article, shall be construed to include all associations and joint stock companies having amy powers or privileges of corporations not possessed by individuals or partnerships, and all corporations shall have the right to sue and shall be subject to be sued, in all courts, in like cases an natural persons.

Section 5. Corporations shall not issue stock, except to bona-fide subscribers thereof, or their assignee, nor shall any corporation issue any bond or other obligation, for the payment of money, except for money or property received or labor done. The stock of corporations shall not be increased, except in pursuance of a general law. Nor shall any law authorise the increase of stock without the consent of the person or persons holding the larger amount in value of the stock, not without due notice of the proposed increase having been previously given in such manner as may be prescribed by law. All fictitions increase of stock or indebtedness shall be void.

Section 6. No corporation organized outside the limits of this state shall be allowed to transact business within the State on more favorable conditions than are prescribed by law to similar corporations organized under the laws of this State.

Section 7. No corporation shall lease or alienate any franchise, so as to relieve the franchise or property held thereunder from the liabilities if the lessor, or grantor, lessee, or grantee, contracted or incurred in operation, use or enjoyment of such franchise or any of its privileges.

Section 8. The Legislature shall enact laws to prohibit the use of names, signs, titles, brands or labels by corporations or persons to the injury of the public.

Section 9. No law shall be passed by the Legislative Assembly granting the right to construct and operate a street railroad, telegrapg, telephone or electric light plant within any city, or incorporated town without requiring the consent of the local authorities having the control of the street or highway proposed to be occupied for such purposes.

Section 10. No corporation shall do business in this state without having one or more places of business and an authorised agent or agents in the same, upon when process may be served.

Section 11. No corporation shall engage in business other than that expressly authorised in its charter.

Section 12. The exercise of the right of eminent domain shall never be so abridged or construed as to prevent the legislature from taking the property and franchises of incorporated companies, and subjecting them to public use the same as the property of individuals.

Section 13. All railroads and other transportation companies are declared to be common carriers and subject to legislative control. All railroad companies shall receive and transport each other’s passengers, tonnage and cars without delay or discrimination.

Section 14. No discrimination in charges or facilities for transportation shall be made by any railroad or other transportation company between places or persons, or in the facilities or the transportation of the same classes of freight or passengers within the State, or coming from or going to any other State. Persons and property transporter over any railroad, or by any other transportation company, or individual, shall be delivered at any station, or landing, at charges not exceeding the charges for the transportation of persons and property of the same class, in the same direction, to any more distant station or landing. Excursion and commutation tickets may be issued at special rates.

Section 15. No railroad corporation shall consolidate its stock, property or franchises with any other railroad corporation owning a competing line.

Section 16. The rolling stock and other moveable property belonging to any railroad company or corporation in this State, shall be considered personal property, and shall be liable to taxation and to execution and sale in the same manner as the personal property of individuals, and such property shall not be exempted from execution and sale.

Section 17. The legislature shall pass paws establishing reasonable maximum rates of charges for the transportation of passengers and freight, and to correct abuses and to prevent discrimination and extortion in the rates of freight and passenger tariffs on the different railroads and other common carriers in the State, and shall enforce such law by adequate penalties.

Section 18. The Legislature may pass laws establishing a railroad and transportation commission and defining its powers and duties.

Section 19. Any railroad, telegraph, express or other corporation organized under the laws of the State shall consolidate by sale or otherwise, with any railroad, telegraph, express or other corporation organized under the laws of any other State, the same shall not thereby become a foreign corporation, but the courts of this State shall retain jurisdiction over that part of the corporate property within the limits of this State in all matters which may arise, as if said consolidation had not taken place.

Section 20. No corporation or association shall bring any armed person or bodies of men into this state for the preservation of the peace or the suppression of domestic violence, without authority of law.

Section 21. No officer, employee, attorney or agent of any corporation, company or association doing business under or by virtue of any municipal charter or franchise in this State shall be eligible to or be permitted to hold any municipal office, or employment therein.

TELEGRAPH AND TELEPHONE

Section 22. Any association or corporation, or the lessee or managers thereof, organised for the purpose, or any individual, shall have the right to construct and maintain lines of telegraph and telephone within this State, and said companies shall receive and transmit each other’s messages without delay or discrimination and all such companies are hereby declared to be subject to legislative control. No railroad corporation organized or doing business in this State shall allow any telegraph corporation or company any facilities, privileges or rates for transportation of men or material or for repairing their lines not allowed to all telegraph companies. The right of eminent domain is hereby extended to all telegraph and telephone companies. The Legislature shall, by general law of uniform operation, provide reasonable regulations to give effect to this section.

Section 23. No railroad or other corporation company shall grant free passes or sell tickets or passes at a discount, other than as sold to the public generally, to any member of the Legislature, or to any person holding any public office under this State.

Section 24. Railroad companies now or hereafter organized or doing business in this State, shall allow all express companies organized or doing business in this State, transportation over all lines of railroad owned or operated by such railroad companies upon equal terms with any other espress company and no railroad corporation organized or business in this State shall allow any express corporation or company any facilities, privileges, or rates for transportation of men or materials or property carried by them or for doing the business of such express companies not allowed to all express companies.

INSURANCE

Section 25. Each Stockholder of any insurance corporation shall be individually and personally liable, equally and ratably, and not one for another, for all contracts, debts and engagements of such corporation or association accruing while they remain such stockholders to the extent of the amount of their stock their and at the far value thereof, in addition to the amount invest in such shares.

Section 26. All corporations, association,s companies, or individuals engaged in or doing an insurance business in this State, or which may establish agencies and do business in the State of Utah or such other officer as may be authorised to receive it, not less than one hundred thousand dollars ($100,000.00), in such securities as may be deemed by such officer equivalent to cash, subject to his order, as a guarantee fund for the security of policy-holders.

Section 27. When such deposit is made with the Treasurer of the State of Utah and that fact is shown by the proper certificate from him, the Secretary of the State of Utah shall issue to the Company making such deposit a license to do business in this State, upon paying the fees required by law.

Section 28. The Legislative Assembly shall compel all insurance companies in this State, or doing business therein, under proper penalties, to make semi-annual reports to the Governor and print the same at their own expence, for the information and protection of the people. Such report shall be duly verified by the President and Secretary of the Company.

BANKS

Section 29. The Legislature shall, by general law, conform all charters of banks, or institutions for banking, to a uniformity of powers, rights and liabilities, and all charters hereafter granted for such corporations shall be made to conform to such general law, and to such amendments as may be made thereto. The Legislature shall have no power to pass any not granting any special charter for banking purposes; but corporations or associations may be formed for such purposes under general laws.

Section 30. The Legislature shall have no power to pass any law sanctioning in any manner, directly or indirectly, the suspension of specie payments, by any person, association or corporation issuing bank notes of any description.

Section 31. The Legislature shall provide by law for the registry of all bills or notes, issued or pot in circulation as money, and shall require ample security for the redemption of the same specie.

Section 32. The stockholders in every corporation and joint stock association for banking purposes, shall, in addition to the amount of capital stock subscribed and bully paid by them, be individually responsible for an additional amount equal to the amount of their stock in such corporation, for all its debts and liabilities of every kind.

Section 33. In case of the insolvency of any bank or banking association, the bill-holders thereof shall be entitled to preference, in payment, over all other creditors of such bank or association.

Section 34. Every banking association now, or which may hereafter be, organised under the laws of this State, shall make and publish a full and accurate statement of its affiars (which shall be certified to, under oath, by one or more of its officers) as may be provided by law.

Section 35. Any president, director, manager, cashier or other officer of any banking institution or association, for the deposit or loan of money, or any individual banker, who shall receive or ascent to the receiving of deposits after he shall have knowledge of the fact that such banking institution or association or individual banker is insolvent, shall be individually responsible for such deposit so received, and shall be guilty of felony and subject to such punishment as shall be prescribed by law.

Section 36. Perpetuities and monopolies are contrary to the genius of a free state, and shall never be allowe. Corporations being creatures of the State, endowed for the public good with a portion of its sovereign powers, must and shall be forever subject to its complete control. No law shall ever be passed granting to any citizen, class of citizens or corporation, privileges or immunities, which upon the same terms shall not equally belong to all citizens or corporations.

Section 37. Every citizen of this State shall be free to obatin employment wherever possible, and any person, corporation or agent, servant or employe thereof interfering or hindering in any way any citizen or resident from obtaining or enjoying employment already obtained from any other corporation or person, shall be deemed guilty of misdemeanor.

Section 38. Any combination between individuals, corporations, associations, or either, having for its object or effect the controlling of the price of any product of the soil or any article of manufacture or commerce, or the cost of exchange or transportation, is prohibited and hereby declared unlawful and against public policy, and any and all franchises heretofore granted or extended or that may hereafter be granted or extended in this State; whenever the owner or owners thereof violate this article, shall be deemed annulled and become void. The Legislature shall pass laws for the enforcement of this section by adequate penalties and in case of incorporated companies, if necessary for that purpose, may declare a forfeiture of their franchises.

• Article on Corporations other than Municipal [Article No. 21] (introduced on 1895-04-18 00:00:00 - CREATE - e697504) [This document] [view current proposal at this moment]
  • None (introduced on 1895-04-18 00:00:00 - REPORT_PROPOSAL - e697505) [view current proposal at this moment]