A PROPOSITION

No. 105.

Introduced by Mr. Wells of Yavapai County.

A Proposition Relative to Corporations.

IT IS HEREBY PROPOSED:

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 All laws relating to corporations may be altered, amended or repealed by the Legislature at any time, and all corporations doing business in this State may, as to such business, be regulated, limited and restrained by law.

Section 2. All existing charters, franchises, special and exclusive privileges, under which an actual and bona fide organization shall not have taken place, and business commenced in good faith, at the time of the adoption of this Constitution, shall thereafter have no validity.

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

Section 4. The term "Corporations," as herein used, shall be construed to include all associations and joint stock companies having any powers and 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.

Sec. 5. Corporations shall not issue stock, except to bona fide subscribers 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 a general law, nor shall any law authorize the increase of the stock, 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 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 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 8. The State shall not in any manner loan its credit nor shall it subscribe to, or be interested in, the stock of any company, association or corporation.

Section 9. 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 subject them to public use the same as the property of individuals.

Section 10. All railroads shall be public highways, and all railroad companies shall be common carriers and subject to legislative control. Any association or corporation organized for the purpose shall have the right to construct and operate a railroad between any designated points within this State, and to connect at the State line with railroads of other States. Every railroad company shall have the right with its road to intersect, connect with, or cross any other railroad.

Section 11. No railroad corporation, or the lessees or manager thereof, shall consolidate its stock, property or franchise with any other railroad corporation owning or having under its control a parallel or competing line.

Section 12. All individuals, associations and corporations shall have equal rights to have persons and property transported over any railroad in this State, and no undue or unreasonable discrimination shall be made in charges or in facilities for transportation of freight or passengers within the State, and no railroad company, nor any lessee, manager, or employe thereof, shall give any preference to individuals, associations or corporations in furnishing cars or motive power.

Section 13. No railroad or other transportation company in existence at the time of the adoption of this Constitution, shall have the benefit of any future legislation without first filing in the office of the Secretary of State an acceptance of the provisions of this Constitution in binding form.

Section 14. No foreign corporation shall do any business in this State without having one or more known places of business, and an authorized agent or agents in the same upon whom process may be served.

Section 15. Each stockholder of any banking or insurance corporation or joint stock association or corporation carrying on banking business shall be individually liable, equally and notably, and not one for the other, for all debts of such corporation or association accruing while they are such stockholders to the extent of the amount of their stock therein at the par value thereof in addition to the amount invested in such shares.

• Proposition Number 105 - Corporations (introduced on 1910-11-23 19:30:00 - CREATE_FROM - e942981) [This document] [view current proposal at this moment]
  • Committee of the Whole Recommendation to Indefinitely Postpone Propositions Number 105, 37, 67, 101, 53, 118, and 29 (introduced on 1910-11-23 19:30:00 - PROCEDURE - e943023) [view current proposal at this moment]
    • None (introduced on 1910-11-23 19:30:00 - ADOPT_PROPOSAL - e943025) [view current proposal at this moment]