https://texaslegalguide.com/index.php?action=history&feed=atom&title=Texas_Constitution%3AArticle_XII%2C_Section_6Texas Constitution:Article XII, Section 6 - Revision history2026-06-22T23:04:31ZRevision history for this page on the wikiMediaWiki 1.44.5https://texaslegalguide.com/index.php?title=Texas_Constitution:Article_XII,_Section_6&diff=1554&oldid=previmported>Admin: Text replacement - "'''This section was repealed" to "<div></div>'''This section was repealed"2020-11-07T17:54:44Z<p>Text replacement - "'''This section was repealed" to "<div></div>'''This section was repealed"</p>
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<div></div>'''This section was repealed November 2, 1993.'''<br />
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The former section was adopted in 1876 and never amended.<br />
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It read: "No corporation shall issue stock or bonds except for money paid, labor done or property actually received, and all fictitious increase of stock or indebtedness shall be void."<br />
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* ''Washer v. Smyer'', 211 S.W. 985, 990 (Tex. 1919) ("The constitutional provision was not intended as a shield . . . . It was aimed against his acquiring stock except upon lawful payment. It was designed for the protection of the corporation and its creditors. It emphasizes the stockholder's obligation to make full and lawful payment in accord with its mandate, rather than furnishes him a defense when he has failed in that obligation. Its purpose is to give integrity to the corporation's capital. It is to prevent false pretense at its hands, and avoid imposition upon the public. None of these objects would be promoted by declaring a note given by a subscriber for stock uncollectible in the hands of a bona fide holder.")<br />
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[[Category:Business Organizations Law]]<br />
[[Category:Repealed Section]]<br />
[[Category:TxCon ArtXII Sec]]</div>imported>Admin