Alabama Constitution Section 233 Corporations restricted to business authorized by charter
Here is the full text and explanation of Section 233 of the Alabama Constitution, which addresses corporate powers and restrictions:
Section 233 – Corporations Restricted to Business Authorized by Charter
“No corporation shall engage in any business other than that expressly authorized in its charter or the law under which it may have been organized.”
🔍 Key Points Explained:
Corporate Scope Limited: A corporation can only conduct the specific business activities that are:
Explicitly stated in its charter, or
Permitted by the law under which it was incorporated.
No Implicit Authority: Corporations cannot assume or add business operations that are not clearly authorized.
Purpose:
Prevents corporations from expanding into unrelated business ventures.
Ensures transparency and regulatory oversight.
Protects the public and investors from unpredictable business practices.
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