[Substitute Proposition Number 22 as Amended by the Committee of the Whole]

Section 1. The term "Corporations," as herein used, shall be construed to include all associations and joint stock companies having any 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 as natural persons.

Section 2. 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 All laws relating to Corporations may be altered, amended or repealed by the Legislature, and all Corporations doing business in this State may, as to such business, be regulated, limited and retrained by law.

Section 3. All existing charters under which a bona fide organization shall not have taken place and business commenced in good faith within six months from the time of approval of this Constitution, shall thereafter have no validity.

Section 4. The Legislature shall not remit the forfeiture of the charter of any Corporation now existing or alter or amend the same, nor pass any general or special law for the benefit of such Corporation, other than in execution of a trust created by law, or by contract, except upon condition that such Corporation shall thereafter hold its charter subject to the provisions of this Constitution.

Section 5. No Corporation shall engage in any business other than expressly authorized in its charter, or the law under which it may have been or may hereafter be organized.

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 and no foreign Corporation shall be permitted to transact business within this State unless said foreign Corporation is by the laws of the country, State or Territory, under which it is formed, permitted to transact a like business in the country, State or Territory of its creation.

Section 7. Corporations shall not issue stock, except to bona fide subscribers therefore, or their assignees; 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 general law, nor shall any law authorize the increase of stock, without the consent of the person or persons holding the larger amount in value of the stock, nor without due notice of the proposed increase having been previously given in such manner as may be prescribed by law. All fictitious increase of stock or indebtedness shall be void.

Section 8. No Corporation shall lease or alienate any franchise, so as to relieve the franchise, or property held thereunder, from the liabilities of the lessor, or grantor, lessee, or grantee, contracted or incurred in the operation, use or enjoyment of such franchise or any of its privileges.

Section 9. No domestic or foreign Corporations shall do any business in this State without first having filed their Articles of Incorporation or a certified copy thereof with the State Auditor and having one or more known places of business and an authorized agent or agents in the State upon whom process may be served. Suit may be maintained against a foreign Corporation in the County where an agent of such Corporation may be found, or in the County where the cause of action may arise.

Section 10. The exorcise 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 11. In all elections for directors or managers of any Corporation, each shareholder shall have the right to cast as many votes in the aggregate as he shall be entitled to vote in said company under its charter, multiplied by the number of directors or managers to be elected at such election; and each shareholder may cast the whole number of votes either in person or by proxy, for one candidate, or distribute such votes among two or more such candidates, and such directors or managers shall not be elected in any other manner.

Section 12. The shareholders or stockholders of every banking, or insurance Corporation or association, shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such corporation or association, to the extent of the amount of their stock therein, at the par value thereof, (in addition to the amount invested in such shares or stock).

Section 13. Any President, director, manager, cashier, or other officer of any banking institution who shall receive or assent to reception of deposits after he shall have knowledge of the fact that such banking institution is insolvent or in failing circumstances shall be individually responsible for such deposits so received.

Section 14. The common law doctrine of the fellow servant, so far as it affects the liability of the master for injuries to his servant, resulting from the acts or omissions of any other servant or servants of the common master is forever abrogated.

Section 15. No persons acting as a corporation under the laws of Arizona shall be permitted to set up or rely upon the want of a legal organization as a defense to any action which may be brought against them as a corporation, nor shall any person or persons who may be sued on a contract now or hereafter made with such corporation, or sued for any injury now or hereafter done to its property, or for a wrong done to its interests, be permitted to rely upon such want of legal organization in his defense.

Section 16. This Article shall not be construed to deny the right of the Legislative power to impose other conditions upon Corporations.

Section 17. Monopolies and trusts shall never be allowed in this State and no incorporated company, co-partnership or association of persons in this State shall directly or indirectly combine or make any contract with any incorporated company, foreign or domestic, through their stockholders or the trustees or assigns of such stockholders or with any co-partnerships or association of persons, or in any manner whatever to fix the prices, limit the production, or regulate the transportation of any product or commodity. The Legislature shall pass laws for the enforcement of this section by adequate penalties and in the case of incorporated companies, if necessary for that purpose, may, as a penalty declare a forfeiture of their franchises.

• Substitute Proposition Number 22 as Amended by the Committee of the Whole (introduced on 1910-11-23 13:30:00 - CREATE_FROM - e942003) [This document] [view current proposal at this moment]
  • None (introduced on 1910-11-23 13:30:00 - ADOPT_PROPOSAL - e942071) [view current proposal at this moment]