Conversion Center Charter Case

130 A.2d 107, 388 Pa. 239, 1957 Pa. LEXIS 448
CourtSupreme Court of Pennsylvania
DecidedMarch 25, 1957
DocketAppeal, 98
StatusPublished
Cited by13 cases

This text of 130 A.2d 107 (Conversion Center Charter Case) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conversion Center Charter Case, 130 A.2d 107, 388 Pa. 239, 1957 Pa. LEXIS 448 (Pa. 1957).

Opinions

Opinion by

Me. Justice Chidsey,

This appeal is from the order of the court below refusing to grant a charter under the provisions of the Nonprofit Corporation Law of May 5, 1933, P. L. 289, as amended, 15 PS §2851 et seq., to a proposed corporation of the second class, to be known as The Conversion Center, Inc.

Article II, §201 of the Act provides: “Five or more natural persons of full age and of either sex, married or single, at least three of whom are residents of the Commonwealth and citizens of the United States, its territories or possessions, may form a nonprofit corporation under the provisions of this act for any purpose or purposes which are lawful and not injurious to the community.”. (Emphasis supplied).

Appellants qualified as incorporators under the foregoing section and complied with all procedural requirements of the Act in the presentation of their application for the charter. The pertinent portion of Article II, §207 of the Act is as follows: “. . . The court shall consider the application. It may hear evidence, if any there be, on behalf of the applicants and against the application, or it may refer the application to a master to make report as to the propriety of granting the application. In such case, upon the filing of the master’s report, the court shall grant the applicants and protestants a hearing, if exceptions are filed by either of them. If the court shall find the articles to be in proper form and within the provisions of this act, [242]*242and the purpose or purposes given in the articles to he lawful and not injurious to the community, the court shall so certify on the articles} and shall order and decree thereon that the articles are approved and that, upon the recording of the articles and the order, the corporation shall come into existence for the purpose or purposes and upon the terms stated therein; otherwise, the court shall refuse the application for a charter.”. (Emphasis supplied).

The court heard testimony without reference to a master. The purpose of the formation of the corporation as set forth in the articles of incorporation is as follows: “Third : The purpose of this corporation shall be to promote the Gospel of Our Lord and Savior, Jesus Christ; to foster, promote and encourage understanding and good will among members of all religious faiths, and to discourage the use of violence, boycotts and sanctions by adherents of one religion against adherents of another by holding religious meetings and conferences; by radio and television broadcasting; by the imprinting of Gospel messages on records and transcriptions; by producing and distributing Gospel motion pictures; by printing and publishing religious literature; by employing and contributing to the support of missionaries; by conducting forums and instruction classes; by operating a library, and by conducting such other activities as promote the said purpose.

“This corporation will place particular emphasis on the evangelization and conversion of adherents of the Roman Catholic faith, providing spiritual, temporal and financial assistance, especially to their converted clergy.

“This is to be a nonprofit corporation and does not contemplate pecuniary gain incidental, or otherwise, to its members.”.

[243]*243The function of the court was to satisfy itself that the purposes set forth in the proposed articles are “lawful and not injurious to the community”. This was recognized by the court below in its opinion when it stated: “We agree with counsel for the applicants that the sole question to be decided by this court is whether or not the purposes set forth in the proposed Articles of Incorporation are lawful and not injurious to the Community.”. However, in its opinion denying the application the court stated its reasons to be that to grant the charter “. . . would in effect place the blanket of approval of this court on such activity.”, and “. . . might well lead to a condition of unrest in the community . . .”. Both of these reasons were predicated upon the second paragraph of the purpose clause which stated that the corporation would place particular emphasis on the evangelization and conversion of adherents of the Roman Catholic faith, providing spiritual, temporal and financial assistance, especially to their converted clergy.

It may be immediately observed that whether the court, because of personal predilection on the subject, does not wish it to appear that it approves of the purposes of the corporation is beside the point. As stated in Deutsch-Amerikanischer Yolksfest-Y erein, 200 Pa. 143, 49 A. 849, at p. 145: “The privilege of incorporation, and the requirements to obtain it, are wholly statutory. The courts are not entitled to grant or refuse the right except upon legal grounds, and the requirements fixed by law can neither be dispensed with, nor added to. . . .”.

The court does not state that the purposes of the incorporators are unlawful or injurious to the public. Indeed to the contrary it states that it agrees “. . . that the privilege of one religious group to proselyte among members of other religious or non-religious groups, to [244]*244win converts to its religious beliefs, stand inviolate under the law and cannot and should not be impinged by any restriction or limitation statutory or otherwise. . . .”. It also indicated at the hearings and in its opinion that it would approve the charter if the second paragraph of the purposes set forth in the application therefor were deleted, and that the incorporators would lose nothing by its exclusion,1 thus expressing the view that the incorporators could direct the preaching of their beliefs and conversion activities toward any or all sects or faiths, free to direct their activity toward any particular one. The court’s position in effect was that the proposed incorporation could concentrate its efforts toward the conversion of adherents' of the Roman Catholic Church but that it should not say so in its charter. Certainly a true and frank statement of the purposes of incorporation is desirable and contemplated by the Act of Assembly. Charters will be refused where the real or ultimate purpose of incorporation is not disclosed in its articles of incorporation and is found to be an unlawful one.

It appeared from the testimony taken and the statement of counsel for the applicants that the incorporators wanted to be “straightforward” and “honest with the public” in declaring that emphasis would be placed upon the conversion of adherents to the Roman Catholic faith, and also set forth this particular objective for the information and protection of those contributing to the corporation’s support, presently and in the future.

[245]*245Neither in the court below nor in this Court did anyone appear in opposition to the grant of the charter. The testimony at the hearings was adduced by counsel for the applicants and, quite properly, by many questions asked by the learned court. The latter questioning included an inquiry as to the necessity of the incorporation. While in our opinion a sufficient answer to this inquiry was given, if -the purposes are lawful and not injurious to the public, the absence of necessity for a charter of incorporation is not a valid reason for refusing its grant: Deutsch-Amerilcanischer Volhsfest-Verein, supra.

It clearly appeared that the incorporators, who were not all of the same religious denomination, were reputable citizens.

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Cite This Page — Counsel Stack

Bluebook (online)
130 A.2d 107, 388 Pa. 239, 1957 Pa. LEXIS 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conversion-center-charter-case-pa-1957.