Alabama Constitution Section 246 Acceptance of article prerequisite to benefits of future legislation
Here is the full text and explanation of Section 246 of the Alabama Constitution:
Alabama Constitution – Section 246
Acceptance of article prerequisite to benefits of future legislation.
"No corporation shall be permitted to take or hold real estate, or any right or interest therein, in this state, by purchase, devise, or otherwise, except for purposes relevant to and in furtherance of the business it is authorized to do in this state; nor shall any corporation doing business in this state be permitted to avail itself of any right or benefit under any law of this state without first accepting the provisions of this article."
Explanation:
This section sets two key restrictions on corporations in Alabama:
1. Real Estate Restrictions:
A corporation cannot own or hold real estate in Alabama unless:
It is for a purpose directly related to the business the corporation is legally authorized to do in Alabama.
This means companies cannot buy property for unrelated speculative or personal uses.
2. Condition for Legal Benefits:
Any corporation doing business in Alabama must accept the provisions of this article (Article XII, which governs corporations) before it can claim any rights or benefits under Alabama law.
In short: No compliance = No benefits.
Purpose:
This provision is meant to:
Prevent corporations from misusing real estate ownership.
Ensure that corporations operating in Alabama are bound by state corporate law before they can claim protections or advantages provided by it.
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