Title 15
COMMERCE

 Chapter 1.  Corporations

Section 15.101.  Application.
Section 15.102.  Corporate charter.
Section 15.103.  Charter application.
Section 15.104.  Audit; inspection.
Section 15.105.  Use of "cooperative" and "credit union".
Section 15.106.  Registrar of corporations.

      Section 15.101.  Application.
     This chapter applies to a private corporation, profit or nonprofit, stock or non-stock, existing on or formed after the Code takes effect, and to its outstanding and future securities.

      Section 15.102.  Corporate charter.
     The Governor grants a charter of incorporation for the establishment and functioning of a business organization, an association of persons for a lawful purpose other than pecuniary profit, a cooperative or a credit union.  The Governor may refuse to grant a charter upon a determination that the applicant's proposed activities pose serious harm to public health, safety or welfare.

      Section 15.103.  Charter application.
     A charter applicant submits to the Governor proposed corporation by-laws and articles of incorporation proposing the corporation's name, principal office or place of business, proposed duration, purposes, powers, and capitalization; the names of incorporators, the number of directors, which is not fewer than three, and corporate officers; the names of directors and officers to serve until the first election; and provisions for management and voting by members, shareholding, disposition of financial surplus, liquidation and amendment of articles.

      Section 15.104.  Audit; inspection.
 
     (1)  The Governor may appoint a person to audit and report on the accounts of a corporation chartered pursuant to this chapter.  The auditing person may examine and audit the books and accounts of the corporation at any time.

     (2)  A member of a nonprofit corporation has the right to inspect and examine the corporation's books and accounts at the usual location of the books and accounts on weekdays during normal business hours in a manner not interfering with the usual conduct of business or corporate affairs.

      Section 15.105.  Use of "cooperative" and "credit union".
     A person may use the terms "cooperative" or "credit union" in a business name or otherwise represent himself to the public to be a nonprofit cooperative association, a credit union or cooperative savings and loan association, only if he has a charter pursuant to this chapter.

      Section 15.106.  Registrar of corporations.
     The Attorney General is the registrar of corporations who has the power and duty to:

     (1)  issue, receive, and hold as custodian a certificate, paper, statement, or other record or document required by this chapter, or regulations to be distributed by, or filed with, the Government;

     (2)  when in the public interest convene a special meeting of a corporation's members, board of directors, or officers by giving notice at least than ten days before the meeting, stating the purpose and subject of the meeting; and

     (3)  order the production of a corporation's books of account, papers and documents.