h. Stockholders are individually liable for failure of the corpora. tion to obey certain regulations with regard to organization and publicity: Fla: On penalty of being liable as members of a partnership. L. 1893, Ch. 4169. See also: g, 4; i. Ia.: Code, § 1618. See also: g, 4; i. Minn.: Stat., § 2796. See also: c, 2 (c); g, 3; i. Neb.: To the extent of their unpaid subscriptions and in addition to the amount of stock owned by them. Stat., § 139. See also: g, 4. N. J.: L. 1896, Ch. 185, §§ 92, 94. See also: c, 2 (a); g, 4; i. R. I.: G. L., Ch. 180, § 13. See also: c, 2 (d); g, 4. i. Any liability of the stockholders is expressly contingent upon the failure of the corporation, its dissolution leaving debts unpaid, or the return of an unsatisfied execution against it: Ari.: R. S., § 245. Col.: Stat., § 497. Conn.: G. S., § 1954. Del.: L. 1899, Ch., 273, § 46. Fla.: R. S., § 2152. Ga.: Code, § 1894. Ill.: Stat., Ch. 32, § 25. Ia.: Code, § 1634. Mass.: P. S., Ch. 106, § 62. Minn.: Stat., SS 2601, 2796. Neb.: Stat., § 1839. N. J.: L., 1896, Ch. 185, § 94. V. THE STATUTORY POWERS AND LIMITATIONS OF CORPORA TIONS. A. THEIR POWER TO CONSOLIDATE WITH OTHER CORPORATIONS. NOTE.-Statutory prohibitions of combinations to promote monopoly, to lessen competition or to regulate prices are not given, as these belong more properly to the Report on Trusts in Part I of this volume. a. Such power is impliedly recognized: Ida.: Constit., Art. 11, § 14. Kan.: L., 1898, Ch. 10, § 8. b. Any two or more corporations may consolidate: Col.: Stat., § 628. Ind.: Stat., § 3424. Ky.: Stat., § 555. Nev.: Domestic corporation may consolidate with a domestic or foreign corporation. G. S., § 1075. c. Any corporations organized for the same purpose or carrying on a similar business may consolidate: 1. Their business must be carried on in the same vicinity: Ill.: Not more than two corporations. $ 65. Stat., Ch. 32, Utah: Domestic corporations only. R. S., § 340. 2. Without restriction as to locality: (a) Any two corporations: Del.: L. 1899, Ch. 273, § 54. Md.: G. L., Art. 23, § 39; L. 1892, Ch. 666. (b) Any two or more corporations: N. Y.: Domestic corporations only. G. L., Ch. 41, $$ 8, 10, 11. d. Certain specified kinds or classes of corporations may consolidate: 1. Two or more mining companies holding adjacent mining lands: Cal.: Civ. Code, § 361. Mont.: Civ. Code, § 527. 2. Any two corporations organized solely for manufacturing purposes and carrying on the same general business: Mo.: R. S., §§ 2786, 2788. 3. Mining or manufacturing companies: (a) Any two: Ohio: Stat., § 3864. (b) Any two or more: Ala.: Civ. Code, §§ 1147, 1150. 4. Any two business and manufacturing companies having the same objects and general business: La.: L. 1875, p. 18. e. There is no statutory provision with regard to consolida- B. THEIR POWER TO LEASE OR CONTRACT WITH OTHER CORPORATIONS a. Such power is impliedly recognized: Ida.: Constit., Art. 11, § 5. Me.: L. 1891, Ch. 84, § 1. b. A corporation has the same power to contract as a private individual: Ari.: R. S., § 233, ¶ 6. c. Any domestic corporation may sell and convey all its property and franchises to any other domestic corporation of the same character: Mich.: Stat., § 4904 e. Mont.: Only where lessor corporation is a mining company. d. A corporation may lease and dispose of its property and N. Y.: Lessee must be a domestic corporation. G. L., Ch. 36, § 40. Pa.: Manufacturing corporations only. P. L., 1895, p. 369. e. Any domestic corporation may lease its property and fran- N. J.: L. 1899, Ch. 150. f. Except in the above-mentioned States (Ari; Ida.; Me.; Mich.; Mont.; N. J.; N. Y.; Pa.; Tenn.) there is no statutory provision with regard to such power. C. THEIR POWER TO OWN THE STOCK OF OTHER CORPORATIONS. a. Corporations are expressly prohibited from owning the stock of other corporations: D. C.: Comp Stat., Ch. 15, § 36. Va.. Unless specially authorized. Code, § 1070; L. 1890, p. 50. b. Corporations have the same power to acquire property as private individuals: Ariz.: R. S., § 233, ¶ 6. c. Any corporation may own the stock of any other corpora tion: Conn.: L. 1895, p. 514. Del.: Domestic or foreign corporations. L. 1899, Ch. 273, $133. N. J.: L. 1896, Ch. 185, § 51. d. Certain kinds or classes of corporations may own the stock of any corporation: Ind.: Manufacturing corporations (but, except for water Minn.: Corporations for mining or manufacturing metals. Mont.: Mining corporations. L., 1899, p. 105. Pa.: Manufacturing corporations. P. L., 1895, p. 369. e. Any corporation may own the stock of certain kinds or classes of corporations: Kan.: Of mutual fire insurance companies. L. 1897, Ch. 121. Pa.: Of corporations for manufacturing iron, metals, etc. Iron Manufacturing Companies, § 7. f. A corporation may own the stock of another corporation engaged in a similar business or in a business in some way useful or subsidiary to the first corporation: 1. Generally: N. Y.: G. L., Ch. 36, §§ 40, 58. Pa.: Petroleum mining companies. Petroleum, § 30. Wyo. But not otherwise. R. S., § 510. 2. May own stock in a railroad connecting with its plant or adjacent thereto: Ill. But in only one railroad connecting the same points. Stat., Ch. 93, § 35. Ohio: Mining, quarrying, and manufacturing corporations may own such stock. Stat., § 3863. Tenn.: Mining corporations may own such stock. Code, § 2339. W. Va.: Manufacturing corporations may own such stock. Civ. Code, Ch. 52, § 4. 3. A mining corporation may own stock in any corporation constructing a tunnel, etc., to facilitate the working of the mine: Nev.: G. S., § 829. 4. Domestic mining, mechanical, or manufacturing companies may hold stock in any corporation, domestic or foreign, for generating power and light which is used in facilitating the business of such corporation: Wis.: Stat.. § 1775. 5. A manufacturing company may own not more than 10% of stock in a gas company in the same town: Me.: In a gas or electric light company. L. 1895, Ch. 102, § 3. Mass.: A manufacturing or other corporation. P. S., g. There is no statutory provision with regard to such power Ala.; Ari.; Ark.; Cal.; Fla.; Ga.; Ida.; Ind. Ter.; Ia.; Ky.; D. LIMITATIONS ON CHARACTER OF BUSINESS THE CORPORATION IS NOTE.-Restrictions which apply to railroads, banking, or insurance corporations or other corporations which, as stated in the introductory note, do not fall within the scope of this report, are not included. This section deals merely with the limitations, if any, upon the specific purposes for which an ordinary private or business corporation may be created. a. There is no statutory limitation upon the character of such business: b. Any purpose intended for pecuniary profit or gain: Mo.: R. S., § 2771. c. For carrying on an ordinary business: R. I.: G. L., Ch. 176, § 2. d. Any species of trade or business: Nev.: G. S., § 802. Wash.: G. S., § 1497. e. Mining, manufacturing or other industrial pursuits: N. Mex.: Comp. L., § 411. Okla.: Stat., § 930. f. Any business designed to aid in the industrial or produc. tive interests of the country: Wyo.: R. S., § 501. g. Any manufacturing or mercantile business or union of the two: Mich.: Stat., § 4161 (a). h. Any kind of manufacturing, agricultural, mining, mechan. ical or mercantile business: D. C.: Comp. Stat., Ch. 15, § 36. i. Incorporation is authorized for certain specific enumerated purposes only: Ind.: Stat., § 5051. Kan.: G. S., §§ 1156-1159. Md.: G. L., Art. 23, §§ 14-38. Mont.: Civ. Code, § 319. Pa.: Corp., §§ 1, 2, 6. Tenn.: Code, § 2024. Tex.: R. S., Art. 642. j. Any business useful to the public for which a firm or copartnership may be lawfully formed in this State: W. Va.: Code, Ch. 54. § 2. k. Any purpose for which individuals may lawfully associate: Cal.: Civ. Code, § 286. Ida.: R. S., § 2577. No. Dak.: Civ. Code, § 2856. Utah: R. S., § 314. Va.. Any business which may be lawfully conducted by an individual or by a body politic or corporate. Code, § 1145. 1. For carrying on any lawful business: Ala.: Civ. Code, § 1251. Ariz.: R. S., § 232. Ark.: Stat., § 1326. Col.: Stat., § 472. Conn.: Stat., § 1944. Del.: L. 1899; Ch. 273, § 1. Fla.: R. S., § 2122. Ill. Stat., Ch. 32, § 1. Ia.: Code, § 1608. Ky.: Stat., § 538. La.: R. L., § 863. |