North Dakota Constitution Article XII - Corporations Other Than Municipal
North Dakota Constitution – Article XII: Corporations Other Than Municipal
This article outlines the constitutional provisions related to private corporations in North Dakota, excluding municipal corporations. Here’s a section-by-section summary:
Section 1 – Formation and Regulation
Corporations (except municipal) must be formed under general laws, not by special legislative acts.
The legislature has the power to alter or repeal corporate laws.
Section 2 – Liability of Stockholders
Stockholders are only liable for corporate debts up to the amount unpaid on their stock.
Section 3 – Local Offices and Management
Foreign corporations operating in North Dakota must have a known place of business and agent within the state.
They must be subject to the same regulations as domestic corporations.
Section 4 – Monopoly and Competition
No corporation can combine to fix prices or restrict competition.
Contracts or combinations that result in monopolies are declared illegal.
Section 5 – Public Service Corporations
Corporations that serve the public (e.g., railroads, utilities) must operate under reasonable regulations to ensure fair service and rates.
The state retains the right to regulate and control charges and practices.
Section 6 – Eminent Domain
Corporations can be granted the power of eminent domain (taking private property for public use), but only as prescribed by law.
Section 7 – Consolidation of Competing Companies
Competing public service corporations (e.g., railroads) may not consolidate or control one another without legislative approval.
Section 8 – Right to Sue and Be Sued
Corporations can sue and be sued like individuals.
Section 9 – Revocation of Charters
The state may revoke corporate charters for violation of laws or abuse of powers.
This article reflects the state’s intent to maintain oversight over corporations, ensure fair business practices, and prevent monopolistic behavior, especially in sectors serving the public. Let me know if you'd like the full text or analysis of any specific section.
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