Pennsylvania Constitution Article X.
Pennsylvania Constitution – Article X: Private Corporations
Summary:
Article X of the Pennsylvania Constitution deals with private corporations, regulating their formation, powers, and the state’s authority over them. Here's a breakdown of its key provisions:
Key Sections of Article X:
Formation Under General Laws:
Corporations can only be formed under general laws.
The General Assembly cannot create corporations by special acts, except for charitable, educational, penal, or reformatory purposes.
Charters and Revocation:
All laws granting corporate powers are subject to amendment or repeal.
Corporate charters can be altered or revoked as per the General Assembly’s discretion, particularly if abused or violated.
Liability of Stockholders:
Stockholders in banking institutions are individually liable for debts of the corporation up to the amount of their stock, in addition to the stock's par value.
Railroad and Canal Companies:
Special rules apply to railroads and canals regarding their consolidation, regulation, and liability.
Discrimination in freight and passenger charges is forbidden.
Companies must maintain public accountability, and free passes are restricted (e.g., to public officials).
Limitations and Provisions:
Monopolies are not to be encouraged.
Foreign corporations must adhere to the same regulations as domestic corporations when operating in Pennsylvania.
Corporations cannot influence elections or political matters through financial contributions.
Purpose and Importance:
This Article was designed to:
Prevent corporate abuse and excessive influence over politics.
Ensure transparency and accountability in business practices.
Empower the General Assembly to regulate corporate behavior and safeguard public interest.
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