Alabama Constitution Section 238 Authority of legislature to revoke charters of incorporation
Here is the text of Section 238 of the Alabama Constitution:
Section 238 – Authority of legislature to revoke charters of incorporation.
The legislature shall not remit the forfeiture of the charter of any corporation now existing, or alter or amend the same, or pass any other general or special law for the benefit of such corporation, except upon the condition that such corporation shall thereafter hold its charter subject to the provisions of this Constitution; and the legislature may at any time alter, amend, or repeal any charter of incorporation now existing and revocable at the adoption of this Constitution or any that may be hereafter created, whenever in their opinion it may be injurious to the citizens of this state, in such manner, however, that no injustice shall be done to the corporators.
Summary:
The Alabama Legislature has the power to:
Alter, amend, or repeal corporate charters that are revocable.
Do so if the corporation’s operations are harmful to the public.
Any corporation must accept that its charter is subject to the Constitution.
No injustice should be done to the people involved in the corporation when changes are made.
This section ensures state oversight of corporations and protects the public interest while respecting corporate rights.
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