Indiana Constitution ARTICLE 11.
Indiana Constitution – Article 11: Corporations
Summary:
Article 11 of the Indiana Constitution governs the formation, regulation, and powers of corporations, with a particular focus on banking institutions and financial corporations. It reflects the state's intent to keep corporate power in check and ensure accountability.
Key Provisions of Article 11:
General Incorporation Laws (Section 1)
Corporations must be formed under general laws; special acts to create corporations are not allowed.
State’s Role in Banking (Section 2)
The state shall not be a stockholder in any bank or financial institution.
Banking Laws (Section 3)
The legislature must provide laws for the formation of banks, including:
Regulation of note issuance
Security for note holders
Limiting liabilities
Banking Restrictions (Section 4)
Banks cannot issue notes (paper money) except under state regulation.
Public Oversight (Section 5)
Banking institutions are subject to public supervision, including periodic reports and transparency measures.
No Immunity from Lawsuits (Section 6)
Corporations cannot be shielded from lawsuits. They must be accountable just like individuals.
Stockholder Liability (Section 7)
Stockholders in banks are individually liable for the bank’s debts, up to the amount of their stock holdings.
Prohibition of Public Funds for Private Use (Section 8)
The state cannot loan credit or donate funds to any individual, corporation, or association.
Purpose and Intent:
This article ensures that corporations, especially financial ones, operate under strict laws, do not misuse public resources, and remain accountable to both the government and the people of Indiana.
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