Alabama Constitution Section 100 - Obligations and liabilities of corporations, etc., held or owned by state, counties or municipalities.
Alabama Constitution – Section 100
Obligations and liabilities of corporations, etc., held or owned by state, counties or municipalities
This section of the Alabama Constitution addresses how obligations and liabilities are treated when the state, counties, or municipalities own stock or other interests in corporations. Here is the text of Section 100:
"Nothing in this Constitution shall be construed to prevent the state, or any county or municipality thereof, holding stock or bonds in any corporation or association, or from owning or controlling the same, from enforcing or receiving the obligations and liabilities due such stockholder or owner in the same manner and to the same extent as private individuals might."
Explanation:
Purpose: This provision ensures that government entities (like the State of Alabama, counties, or cities) are not deprived of their rights as shareholders or owners in corporations or associations.
It clarifies that if the government holds stock or bonds, it has the same legal standing as a private individual or company to enforce and collect obligations or liabilities owed to it.
It does not prohibit public ownership in private corporations, nor does it offer any special privilege or immunity. Instead, it guarantees equal treatment in terms of legal rights and enforcement.
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