Alabama Constitution Section 241 "Corporation" defined
Alabama Constitution – Section 241: "Corporation" Defined
Text of Section 241:
"The term ‘corporation,’ as used in this article, shall be construed to include all joint-stock companies, or associations having any of the powers or privileges of corporations not possessed by individuals or partnerships."
Explanation:
This section broadens the legal definition of the term “corporation” for purposes of the article in which it appears (likely related to corporate regulation and taxation).
Key Points:
The term “corporation” does not only refer to traditional business corporations.
It includes:
Joint-stock companies – businesses owned by shareholders with transferable shares.
Associations – groups or organizations that have corporate-like powers, such as:
The ability to sue or be sued as an entity.
The ability to hold property in the association’s name.
Continuity of existence beyond the lives of individual members.
The defining factor is whether the group has powers or privileges not held by individuals or partnerships.
Purpose:
To ensure corporate regulations apply broadly, preventing organizations from evading oversight by using alternate structures.
To maintain a fair and consistent legal framework for regulating entities that operate like corporations, even if not formally incorporated.
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