Jeffries v. Commonwealth

93 S.E. 701, 121 Va. 425, 1917 Va. LEXIS 48
CourtCourt of Appeals of Virginia
DecidedSeptember 20, 1917
StatusPublished
Cited by8 cases

This text of 93 S.E. 701 (Jeffries v. Commonwealth) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeffries v. Commonwealth, 93 S.E. 701, 121 Va. 425, 1917 Va. LEXIS 48 (Va. Ct. App. 1917).

Opinion

Kelly, J.,

delivered the opinion of the court.

[430]*430The paramount question in this case is whether public service corporations created and existing under the laws of this State have, under those laws, the same right of voluntary dissolution which is accorded to all other business corporations. The constitutional and statutory provisions on the subject seem to us to plainly answer the question in the affirmative.

“The creation of corporations, and the extension and amendment of charters (whether heretofore or hereafter granted) shall be provided for by general laws, and no charter shall be granted, amended or extended by special act, nor shall authority in such matters be conferred upon any tribunal or officer, except to ascertain whether the applicants have, by complying with the requirements of the law, entitled themselves to the charter, amendment or extension applied for, and to issue, or refuse, the same accordingly. Such general laws may be amended or repealed by the General Assembly; and all charters and amendments of charters, now existing and revocable, or hereafter granted or extended, may be repealed at any time by special act. Provision shall be made, by general laws, for the voluntary surrender of its charter by any corporation, and for the forfeiture thereof for non-user or mis-user. The General Assembly shall not, by special act, regulate the affairs of any corporation, nor, by such act, give it any rights, powers or privileges.” (Italics added.) Virginia Constitution, 1902, sec. 154.

It is under this section of the Constitution that the General Assembly has proceeded to enact the general laws now in force in this state regarding the creation of corporations, their division into classes, the amendment and extension of their charters, and the corporate powers, privileges and limitations. That the section in terms embraces corporations of every class is so plain that no argument to prove the proposition could make it plainer, and none to disprove it could raise a question in any reasonable mind. This we [431]*431believe to be either directly or indirectly conceded in the multiform arguments presented in this cause for the purpose of placing upon the section a construction which would except public Service corporations from the operation of the provision therein directing the General Assembly to provide “by general laws for the voluntary surrender of its charter by any corporation.” All such arguments come, as they manifestly must come, from considerations outside of the plain language selected by the framers of the Constitution in their well known care and purpose to clarify and unify the corporation laws of the State. These extraneous arguments will be considered in the further course of this opinion. It is sufficient in this immediate connection to say that we have been unable to regard them as of any convincing force. We are constrained to accept the section as it stands, and believe that no satisfactory reason has been shown for resorting to rules of construction to construe the language which, in itself, is so conspicuously clear. (See authorities cited by Judge Prentis in London Bros. v. National Exchange Bank of Roanoke, 93 S. E. 699, decided at this term.)

Taking the Constitution, therefore, at its word, it is to be expected that the General Assembly has obeyed its mandate and has provided by general laws for the voluntary surrender of the charter of any corporation, regardless of its class; and the next orderly step is to inquire whether that body has done so — not how well or how wisely. The form and wisdom of the method of voluntary surrender of corporate franchises are matters which were expressly delegated to the legislature by the terms of the Constitution, and as to them neither the Corporation Commission nor this court can have any controlling voice.

Coming then to a consideration of what the legislature has done in this respect, we find that in addition to the special powers conferred and restrictions imposed on rail[432]*432road corporations (the one involved in this case belonging to that class) in chapter 2 of the Virginia “act concerning corporations,” it is provided that they “shall have all the general powers and be subject to all the general restrictions conferred and imposed on corporations by chapter 5 of this act and the laws of this State relating to corporations so far as applicable thereto.” Code, section 1105-b, subsection (2).

Chapter 5 of the act (section 1105-e, Pollard’s Code, 1904) provides, in subsections (1) and (2), as follows:

“(1) The provisions of this chapter, except in those cases where, by the express terms of the provisions hereof, it is confined to corporations created under this act, shall be construed to apply to all corporations of this State organized or to be organized, for any laioful purpose for which a corporation may be created under this act, but shall not be construed to enlarge the powers, of corporations chartered under chapter four of this act.
“(2) Every corporation of this State shall have power:
“(a) To have succession for the time stated in its-charter, certificates of incorporation, or articles of association. But when no period is so limited, it shall be perpetual, subject to the power' of repeal reserved by the Constitution to the General Assembly,” and, further,
“(i) To wind up and dissolve itself, or to be wound up and, dissolved in the manner provided in this act," (Italics added.)

One of the contentions in this case, which may be most conveniently adverted to just here, is that even if public service corporations are embraced in the direction contained in section 154 of the Constitution with reference to the enactment of general laws for the voluntary surrender of charters, still subsection (1) of 1105-e does not mean to include such corporations in all the provisions in chapter 5 of the act, but simply meant to declare that corporations [433]*433created outside of the act were to be affected just as much as those that were created under the act, and was referring to private corporations in each instance. The first and natural impression to be obtained from a reading of the language of subsection (1) is directly to the contrary of this contention, and the language must be considerably strained to give any color at all to the argument. That it has no such meaning as is here contended for, and plainly intends to embrace all corporations, affirmatively appears from the language of subsections (2) (a) and (2) (h), wherein the terms “charter,” “certificate of incorporation” and articles of association” are used. The legislature evidently meant to designate by the term “charter” corporations already existing, and by the terms “certificate of incorporation” and “articles of association” corporations created under the act. Considering the nomenclature of the act, these are apt, if not necessary, terms for that purpose, and they were plainly so used.

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Cite This Page — Counsel Stack

Bluebook (online)
93 S.E. 701, 121 Va. 425, 1917 Va. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeffries-v-commonwealth-vactapp-1917.