POWER TO BE A CORPORATION IS A FRANCHISE

In the United States the power to be a corporation is a franchise

which can only exist through the legislature. There are two distinct

methods in which corporations may be called into being: First, by a

specific grant of the franchise to the members, and, second, by a

general grant which becomes operative in favour of particular persons

when they organise for the purpose of availing themselves of its

provisions. When the specific grant is made it is called a charter. In

the case of private corporations the charter must be accepted by the

members, since corporate powers cannot be forced upon them against

their will; but the charter is sufficiently accepted by their acting

under it. When special charters are not granted individuals may

voluntarily associate, and by complying with the provisions of certain

State laws may take to themselves corporate powers. In some of the

States private corporations are not suffered to be created otherwise

than under general laws, and in others public corporations are created

in the same way.

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