Wisconsin Constitution Article XI - Corporations
Wisconsin Constitution – Article XI: Corporations
Overview:
Article XI of the Wisconsin Constitution addresses corporations, with specific attention to municipal corporations (local governments) and private corporations. It regulates how corporations are formed, what powers they have, and the responsibilities of the legislature regarding them.
🔹 Key Sections of Article XI:
Section 1 – Municipal Corporations
The legislature is responsible for restricting the power of cities, towns, and villages to incur debt.
A key focus is to protect public finances by limiting municipal borrowing and liability.
Section 2 – Special and Private Laws Prohibited
The legislature may not pass special or private laws creating corporations.
All corporations must be formed under general laws.
Ensures equal access and uniform treatment in corporate law.
Section 3 – Amendment or Repeal of Corporate Charters
Corporate charters are subject to alteration or repeal by the legislature at any time.
Prevents corporations from gaining irrevocable rights that could conflict with public interests.
Section 3a – Regulation of Railroads
Allows the state to regulate railroad freight and passenger rates.
Reflects historical concerns about monopoly power and public accessibility.
Section 4 – Banking Laws
Repealed; originally dealt with banking regulations.
Now addressed under more modern statutory law.
Section 5 – Municipal Home Rule (added in 1924)
Grants cities and villages the power to govern themselves (home rule) on local matters.
However, the legislature may still enact laws of statewide concern, even if they affect local governance.
⚖️ Purpose and Implications:
Protects the public from corporate overreach or favoritism.
Promotes uniformity and legislative oversight in the formation and operation of corporations.
Affirms the principle of local self-governance while maintaining statewide legal consistency.
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