Virginia Constitution ARTICLE IX - Corporations
Virginia Constitution – Article IX: Corporations outlines the state’s authority over corporations and the regulation of their formation, powers, and operations. Here's a summary of its key points:
Overview of Article IX - Corporations
General Assembly Authority
The General Assembly (Virginia’s legislature) has the authority to regulate all corporations—public and private—formed under Virginia law or doing business in the state.
Charters and Special Laws
No special law can be enacted to create a corporation unless the law applies to a municipality or a charity.
All corporations must be formed under general laws.
Any corporate charter may be altered, amended, or repealed by the General Assembly.
Corporate Powers and Limitations
Corporations may only exercise powers granted by law.
The legislature can impose conditions on corporations to protect public interests.
The General Assembly may regulate or prohibit any corporate activity that is deemed against the public welfare.
Foreign Corporations
Foreign corporations (those incorporated outside Virginia) must comply with Virginia laws to operate within the state.
They are subject to the same regulations and liabilities as domestic corporations.
State Corporation Commission (SCC)
The SCC is responsible for overseeing and regulating corporations and financial institutions in Virginia.
It ensures corporations follow the rules and protects consumers and investors from abuse.
Railroads and Public Service Corporations
Special provisions exist for public service corporations, such as railroads and utilities.
These corporations are subject to stricter regulation due to their impact on public services.
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