Alabama Constitution Section 240 Corporations may sue and be sued like natural persons
Here is the full text and explanation for Section 240 of the Alabama Constitution:
Alabama Constitution – Section 240
Corporations may sue and be sued like natural persons
“Corporations may sue and be sued in all courts and like natural persons.”
Explanation:
Section 240 grants legal personhood to corporations for purposes of litigation:
✅ What it Means:
Corporations in Alabama have the right to initiate lawsuits (sue).
Corporations can also be sued in court just like any individual person.
This applies in all courts — state or local.
⚖️ Legal Effect:
Ensures that corporations are accountable under the law.
Allows corporations to enforce contracts, protect rights, and defend themselves legally.
Puts corporations on equal footing with individuals in legal matters.
Purpose:
This section ensures:
A fair and functional legal system where businesses are held to the same standard as people.
That corporate entities are not above or beyond the reach of the law.
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