New York Constitution Article X - Corporations
New York Constitution – Article X: Corporations
Article X of the New York State Constitution addresses the regulation and formation of corporations, including both private and public entities. Here's a summary of its key provisions:
Section 1 – Corporations
Corporations are created under general laws, not special acts, except for municipal purposes or if the Legislature deems a special act necessary for the public good.
The Legislature retains the power to amend, alter, or repeal corporate laws.
Section 2 – Dues from Corporations
Dues (debts) from corporations must be secured and collected like those from individuals.
Section 3 – Liability of Stockholders
In certain corporations (especially banking), stockholders may be held individually liable for debts or responsibilities, according to law.
Section 4 – Banking Laws
Laws passed to form banks must receive approval through public referendum (i.e., voter approval), ensuring direct democratic oversight.
Section 5 – Banknote Issuance
The Legislature cannot authorize the issuance of bank notes or paper money by anyone but federal authority, unless secured by state law.
Section 6 – State's Interest in Banks
The State shall not be interested in any bank or money-issuing corporation as a stockholder.
Section 7 – Liability of Bank Officers
Bank officers or agents who knowingly violate laws or fail in duties can be held personally liable for losses resulting from their actions.
Section 8 – Savings Banks and Trust Companies
Provides for the regulation and safety of savings banks and trust companies, ensuring the security of depositors.
This Article ensures that corporate power is regulated for public welfare and that financial institutions are subject to legal safeguards and oversight.
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