Gordon v. Lake

356 S.W.2d 138, 163 Tex. 392, 5 Tex. Sup. Ct. J. 325, 1962 Tex. LEXIS 732
Texas Supreme Court·Decided April 4, 1962·No. A-8583·Published·Cited by 86 cases

Opinions

WALKER, JUSTICE.

This is an original proceeding in which Gerald S. Gordon et al, relators, seek a writ of mandamus requiring Honorable P. Frank Lake, Secretary of State, respondent, to file a corporate charter setting forth the purposes formerly authorized by Article 1303b, Vernon’s Ann. Texas Civ. Stat. The statute was expressly repealed by the Legislature effective ninety days after May 29, 1961. Acts 1961, 57th Leg., p. 458, ch. 229. Relators [394] presented their original charter to respondent on August 3, 1961. An amended charter was submitted five days later, and respondent refused to file the same on the ground that Article 1303b had previously been repealed by the Texas Business Corporation Act, which was adopted in 1955. Motion for leave to institute the present proceeding was filed on August 9, 1961.

For some time after the adoption of the Business Corporation Act, the Secretary of State accepted and filed charters containing purpose clauses stated in the terms of Article 1303b. In Opinion No. WW-77 dated April 1, 1957, the Attorney General took the position that the earlier statute was repealed by such Act. As indicated above, it was solely for this reason that respondent declined to file the charter presented to him by relators. He concedes that if they were entitled to organize a corporation for the purposes authorized by Article 1303b, the instrument tendered to him complied in all respects with the laws then in effect.

A statute may be repealed expressly or by implication. Where a later enactment is intended to embrace all the law upon the subject with which it deals, it repeals all former laws relating to the same subject. See Motor Inv. Co. v. City of Hamlin, 142 Texas 486, 179 S.W. 2d 278. Repeals by implication are not favored, however, and laws relating to the same subject should be considered as though incorporated in the same act. If they can be harmonized and effect given to each when so considered, there is no repeal by implication. See Conley v. Daughters of The Republic, 106 Texas 80, 156 S.W. 197.

Several types of corporations are expressly excepted from the provisions of the Business Corporation Act. Article 2.011 provides that “[n]o corporation may adopt this Act or be organized under this Act or obtain authority to transact business in this State under this Act: * * * (4) If any one or more of its purposes is to operate any of the following: * * * (b) trust companies * * Section A of Article 9.14 declares as a general rule that the Act does not apply to corporations organized for any of such purposes. It is provided, however, that:

“* * * if any of said excepted domestic corporations were heretofore or are hereafter organized under special statutes which contain no provisions in regard to some of the matters provided for in this Act, or any such excepted foreign corpora[395] tions were heretofore or are hereafter granted authority to transact business within this State under any special statute which contains no provisions in regard to some of the matters provided for in this Act in respect of foreign corporations, or if such special statutes specifically provide that the general laws for incorporation or for the granting of a certificate of authority to transact business in this State, as the case may be, shall supplement the provisions of such statutes, then the provisions of this Act shall apply to the extent that they are not inconsistent with the provisions of such special statutes.”

Subject to the exceptions and limitations of said Section A, the Act is made applicable to all domestic corporations organized after its effective date. Article 9.14, Section D. It is further provided that subject to the provisions of Articles 9.14, 9.15, Section C of Article 2.02 and Section B of Article 9.16, “and excluding any existing general Act not inconsistent with any provisions of this Act, no law of this State pertaining to private corporations, domestic or foreign, shall hereafter apply to corporations organized under this Act * * Article 9.16.

As pointed out in Carney v. Sam Houston Underwriters, Texas Civ. App., 272 S.W. 2d 942 (wr. ref., n.r.e.), the ordinary conception of a trust company is one that is authorized to take and administer trusts. Prior to its repeal, Article 1303b permitted the organization of a corporation with the power, among others, to act as trustee under any lawful express trust committed to it by contract or will, or under appointment of any court having jurisdiction of the subject matter. This is one of the stated purposes of the charter now in question, and we agree with the Attorney General that relators are attempting to organize a “trust company” within the meaning of the Business Corporation Act.

It is evident that the Legislature did not intend for the Act to embrace all of the law on the subject of corporations and their creation. The excepted corporations may not be organized under or adopt its terms, but their organization under other applicable laws is clearly contemplated thereby. None of the pro-^ visions of Chapter 2, Title 32, Texas Revised Civil Statutes 1925, as amended, was expressly repealed, and we find nothing in the Act to support the conclusion that they were repealed by implication. To the extent that they relate to the organization of excepted corporations, such provisions are in no way inconsistent with the Business Corporation Act. It is our opinion that Article 1303b was in full force and effect when relators pre[396] sented their charter for filing and that respondent should have accepted and filed the same.

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Gordon v. Lake, 356 S.W.2d 138, 163 Tex. 392, 5 Tex. Sup. Ct. J. 325, 1962 Tex. LEXIS 732 (Tex. 1962).

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