South Carolina Constitution Article IX - Corporations
South Carolina Constitution – Article IX: Corporations
Summary:
Article IX of the South Carolina Constitution governs the creation, regulation, and oversight of corporations within the state. It includes provisions for both private and public (municipal) corporations, aiming to ensure corporate accountability, lawful formation, and public interest protection.
🔑 Key Provisions of Article IX – Corporations:
Formation by General Law Only:
Corporations must be formed under general laws, not by special legislative acts.
This prevents favoritism and promotes uniform regulation.
Regulation and Oversight:
The General Assembly holds the power to regulate, restrict, or revoke corporate charters for the public good.
This ensures that corporations operate responsibly and within the law.
Municipal and Public Corporations:
Addresses how municipal corporations (cities, towns, etc.) are established and governed.
Limits on municipal debt and rules for issuing bonds may also be included here or referenced.
Banking and Insurance:
Often includes special sections or references regarding banks, insurance companies, and utilities, which are heavily regulated sectors.
Requires certain disclosures and structural requirements for these types of corporations.
Corporate Powers and Liabilities:
Defines how much power corporations can legally exercise and who is liable in cases of wrongdoing (e.g., officers or directors).
Charter Amendments:
Sets out how a corporate charter may be amended, repealed, or forfeited under South Carolina law.
⚖️ Purpose:
To maintain fair business practices.
Prevent legislative favoritism.
Ensure public control over entities granted special privileges.
Provide transparency and limits on corporate powers.
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