Kentucky Proposed Corporations Amendment, Amendment 2 (2002)

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Kentucky Amendment 2, also known as the Proposed Corporations Amendment, was on the November 7, 2002 election ballot in Kentucky. It passed, with 61.3% of voters in favor.

Election results

Kentucky Amendment 2
ResultVotesPercentage
Approveda Yes 570,796 60.75%
No368,85439.25%

Text of measure

The language that appeared on the ballot:

Are you in favor of permitting the General Assembly to provide by general law for the formation, organization, and regulation of corporations by repealing certain sections of the Constitution of Kentucky relating to corporations?

Constitutional Changes Proposed by the Amendment

Currently, the Kentucky Constitution contains numerous sections that regulate corporations in detail. The proposed constitutional amendment would repeal 11 sections of the Kentucky Constitution relating to corporations and replace them with a section that permits the General Assembly to regulate corporations by general laws. The General Assembly would be given the power to prescribe powers, rights, duties, and liabilities of corporations and their officers and stockholders by general laws. The sections to be repealed are as follows:

- Section 190: Provides that corporations in existence at the time of the adoption of the present Constitution shall file an acceptance of the provisions of the Constitution;

- Section 191: Provides that unexercised charters granted prior to the adoption of the Constitution are revoked;

- Section 192: Provides that corporations are limited to the exercise of the powers provided in their charters and shall not hold real estate longer than 5 years except that which is necessary and proper for carrying on legitimate business;

- Section 193: Provides that stocks or bonds are to be issued only for money, property, or labor at fair market value;

- Section 194: Provides that corporations shall have a place of business and process agent in the state;

- Section 198: Prohibits trusts and combinations in restraint of trade;

- Section 200: Provides that a domestic corporation consolidating with a foreign corporation does not become foreign;

- Section 202: Provides that foreign corporations are not to be given privileges over domestic corporations;

- Section 203: Provides that liabilities under a corporate franchise are not to be released by lease or alienation;

- Section 207: Provides for cumulative voting for directors of a corporation; and

- Section 208: Provides that the term "corporation" also includes joint stock companies and associations.

See also

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