Art. 2.01. Purposes A. Except as hereinafter in this Article excluded herefrom, corporations for profit may be organized under this Act for any lawful purpose or purposes. Corporations for the purpose of operating non-profit institutions, including but not limited to those devoted to charitable, benevolent, religious, patriotic, civic, cultural, missionary, educational, scientific, social, fraternal, athletic, or aesthetic purposes, may not adopt or be organized under this Act. B. No corporation may adopt this Act or be organized under this Act or obtain authority to transact business in this State under this Act: (1) If any one or more of its purposes for the transaction of business in this State is expressly prohibited by any law of this State. (2) If any one or more of its purposes for the transaction of business in this State is to engage in any activity which cannot lawfully be engaged in without first obtaining a license under the authority of the laws of this State to engage in such activity and such a license cannot lawfully be granted to a corporation. (3) If among its purposes for the transaction of business in this State, there is included, however worded, a combination of the two businesses listed in either of the following: (a) The business of raising cattle and owning land therefor, and the business of operating stockyards and of slaughtering, refrigerating, canning, curing or packing meat. Owning and operating feed lots and feeding cattle shall not be considered as engaging in "the business of raising cattle and owning land therefor" within the purview of this paragraph of this subsection. (b) The business of engaging in the petroleum oil producing business in this State and the business of engaging directly in the oil pipe line business in this State: provided, however, that a corporation engaged in the oil producing business in this State which owns or operates private pipe lines in and about its refineries, fields or stations or which owns stock of corporations engaged in the oil pipe line business shall not be deemed to be engaging directly in the oil pipe line business in this State; and provided that any corporation, or group of corporations acting in partnership or other combination with other corporations, engaged as a common carrier in the pipe line business for transporting oil, oil products, gas, carbon dioxide, salt brine, fuller's earth, sand, clay, liquefied minerals or other mineral solutions, shall have all of the rights and powers conferred by Sections 111.019 through 111.022, Natural Resources Code. (4) If any one or more of its purposes is to operate any of the following: (a) Banks, (b) trust companies, (c) building and loan associations or companies, (d) insurance companies of every type and character that operate under the insurance laws of this State, and corporate attorneys in fact for reciprocal or inter-insurance exchanges, (e) railroad companies, (f) cemetery companies, (g) cooperatives or limited cooperative associations, (h) labor unions, (i) abstract and title insurance companies whose purposes are provided for and whose powers are prescribed by Chapter 9 of the Insurance Code of this State. C. A company may be incorporated under this Article or under Chapter 1, Title 112, Revised Statutes, if the company: (1) operates a railroad passenger service by contracting with a railroad corporation or other company; and (2) does not construct, own, or maintain a railroad track. Acts 1955, 54th Leg., p. 239, ch. 64, eff. Sept. 6, 1955. Amended by Acts 1973, 63rd Leg., p. 1486, ch. 545, Sec. 2, eff. Aug. 27, 1973; Acts 1977, 65th Leg., p. 2690, ch. 871, Sec. 3, eff. Sept. 1, 1977; Acts 1981, 67th Leg., p. 2489, ch. 650, Sec. 1, eff. Aug. 31, 1981; Acts 1989, 71st Leg., ch. 971, Sec. 2, eff. Aug. 28, 1989.

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Last modified: August 10, 2007