of the qualified electors thereof, voting at an election to be held for that purpose, nor unless before or at the time of incurring such indebtedness provision shall be made for the collection of an annual tax sufficient to pay the interest on such indebtedness as it falls due, and also provision to constitute a sinking fund for the payment of the principal thereof on or before maturity, which shall not exceed forty years from the time of contracting the same; provided, however, that the City and County of San Francisco may at any time pay the unpaid claims, with interest thereon at the rate of five per cent per annum, for materials furnished to and work done for said city and county during the forty-first, forty-second, forty-third, forty-fourth, and fiftieth fiscal years, and for unpaid teachers' salaries for the fiftieth fiscal year, out of the income and revenue of any succeeding year or years, the amount to be paid in full of said claims not to exceed in the aggregate the sum of five hundred thousand dollars, and that no statute of limitations shall apply in any manner to these claims; and provided further, that the City of Vallejo, of Solano County, may pay its existing indebtedness incurred in the construction of its waterworks whenever two thirds of the electors thereof voting at an election held for that purpose shall so decide, and that no statute of limitations shall apply in any manner. Any indebtedness or liability incurred contrary to this provision, with the exceptions herein before recited, shall be void. [Amendment adopted November 6, 1900.] Section 18 amended by adding the following, adopted November 6, 1906: The City and County of San Francisco, the City of San José and the Town of Santa Clara may make provision for a sinking fund, to pay the principal of any indebtedness incurred, or to be hereafter incurred, by it, to commence at a time after the incurring of such indebtedness of not more than a period of one fourth of the time of maturity of such indebtedness, which shall not exceed seventy-five years from the time of contracting the same. Any indebtedness incurred contrary to any provision of this section shall be void. [Amendment of 1892.] SEC. 18. No county, city, town, township, board of education, or school district shall incur any indebtedness or liability in any manner, or for any purpose, exceeding in any year the income and revenue provided for it for such year, without the assent of two thirds of the qualified electors thereof, voting at an election to be held for that purpose, nor unless, before or at the time of incurring such indebtedness, provision shall be made for the collection of an annual tax sufficient to pay the interest on such indebtedness as it falls due, and also provision to constitute a sinking fund for the payment of the principal thereof on or before maturity, which shall not exceed forty years from the time of contracting the same. Any indebtedness or liability incurred contrary to this provision shall be void. [Amendment adopted November 8, 1892.] [Original Section.] SEC. 18. No county, city, town, township, board of education, or school district, shall incur any indebtedness or liability in any manner or for any purpose, exceeding in any year the income and revenue provided for it for such year, without the assent of two thirds of the qualified electors thereof voting at an election to be held for that purpose, nor unless, before or at the time of incurring such indebtedness, provision shall be made for the collection of an annual tax sufficient to pay the interest on such indebtedness as it falls due, and also to constitute a sinking fund for the payment of the principal thereof within twenty years from the time of contracting the same. Any indebtedness or liability incurred contrary to this provision shall be void. 5 Cal. 288; 34 Cal. 290; 39 Cal. 270; 43 Cai. 534; 61 Cal. 277; 62 Cal. 642; 74 Cal. 224, 259, 417; 75 Cal. 505; 80 Cal. 363; 81 Cal. 498; 86 Cal. 45; 89 Cal. 114, 387; 90 Cal. 546; 92 Cal. 296, 342; 97 Cal. 219; 99 Cal. 149, 413; 103 Cal. 655; 106 Cal. 153; 107 Cal. 181, 648; 109 Cal. 153; 111 Cal. 322; 112 Cal. 163, 313, 326, 540; 113 Cal. 161, 202; 115 Cal. 37; 118 Cal. 530; 119 Cal. 44, 227, 634; 124 Cal. 61; 131 Cal. 297; 135 Cal. 500; 136 Cal. 405; 143 Cal. 179; 144 Cal. 395; 146 Cal. 730, 732; 148 Cal. 709. Use of streets for gas and water pipes. SEC. 19. In any city where there are no public works owned and controlled by the municipality for supplying the same with water or artificial light, any individual, or any company duly incorporated for such purpose under and by authority of the laws of this State, shall, under the direction of the Superintendent of Streets, or other officer in control thereof, and under such general regulations as the municipality may prescribe for damages and indemnity for damages, have the privilege of using the public streets and thoroughfares thereof, and of laying down pipes and conduits therein, and connections therewith, so far as may be necessary for introducing into and supplying such city and its inhabitants either with gaslight or other illuminating light, or with fresh water for domestic and all other purposes, upon the condition that the municipal government shall have the right to regulate the charges thereof. [Amendment adopted November 4, 1884.] [Original Section.] SEC. 19. No public work or improvement of any description whatsoever shall be done or made, in any city, in, upon or about the streets thereof, or otherwise, the cost and expense of which is made chargeable or may be assessed upon private property by special assessment, unless an estimate of such cost and expense shall be made, and an assessment, in proportion to benefits, on the property to be affected or benefited, shall be levied, collected, and paid into the city treasury before such work or improvement shall be commenced, or any contract for letting or doing the same authorized or performed. In any city where there are no public works owned and controlled by the municipality, for supplying the same with water or artificial light, any individual, or any company duly incorporated for such purpose under and by authority of the laws of this State, shall, under the direction of the Superintendent of Streets, or other officer in control thereof, and under such general regulations as the municipality may prescribe for damages and indemnity for damages, have the privilege of using the public streets and thoroughfares thereof, and of laying down pipes and conduits therein, and connections therewith, so far as may be necessary for introducing into and supplying such city and its inhabitants either with gaslight or other illuminating light, or with fresh water for domestic and all other purposes, upon the condition that the municipal government shall have the right to regulate the charges thereof. 54 Cal. 246; 56 Cal. 654; 57 Cal. 616; 61 Cal. 24, 277; 62 Cal. 315, 327, 333, 370. ARTICLE XII. CORPORATIONS. Formation of corporations. SECTION 1. Corporations may be formed under general laws, but shall not be created by special act. All laws now in force in this State concerning corporations, and all laws that may be hereafter passed pursuant to this section, may be altered from time to time or repealed. [Constitution of 1849, Art. IV, § 31.] 54 Cal. 94; 61 Cal. 38, 313; 62 Cal. 263; 63 Cal. 581; 73 Cal. 77; 77 Cal. 371; 83 Cal. 396, 413; 92 Cal. 316; 109 Cal. 584; 119 Cal. 342; 123 Cal. 527; 125 Cal. 412; 131 Cal. 33. App. R. 1, 67. Dues from corporations. SEC. 2. Dues from corporations shall be secured by such individual liability of the corporators and other means as may be prescribed by law. [Constitution of 1849, Art. IV, § 32.] 62 Cal. 460; 125 Cal. 410. Liability of stockholders and directors. SEC. 3. Each stockholder of a corporation or joint-stock association shall be individually and personally liable for such proportion of all its debts and liabilities contracted or incurred during the time he was a stockholder, as the amount of stock or shares owned by him bears to the whole of the subscribed capital stock or shares of the corporation or association. The directors or trustees of corporations and joint-stock associations shall be jointly and severally liable to the creditors and stockholders for all moneys embezzled or misappropriated by the officers of such corporation or jointstock association during the term of office of such director or trustee. [Constitution of 1849, Art. IV, § 36.] 59 Cal. 286; 62 Cal. 448, 460; 63 Cal. 235, 289; 87 Cal. 32; 97 Cal. 95; 108 Cal. 425; 111 Cal. 63; 116 Cal. 384; 122 Cal. 523; 124 Cal. 150; 125 Cal. 410; 136 Cal. 449; 142 Cal. 384; 143 Cal. 224; 147 Cal. 640. Meaning of corporations. SEC. 4. The term corporations, as used in this article, shall be construed to include all associations and joint-stock companies having any of the powers or privileges of corporations not possessed by individuals or partnerships, and all corporations shall have the right to sue and be subject to be sued, in all courts, in like cases as natural persons. [Constitution of 1849, Art. IV, § 33.] 95 Cal. 581, 592. Banks. SEC. 5. The Legislature shall have no power to pass any act granting any charter for banking purposes, but corporations or associations may be formed for such purposes under general laws. No corporation, association, or individual shall issue or put in circulation, as money, anything but the lawful money of the United States. [Constitution of 1849, Art. IV, § 34.] 73 Cal. 77. Existing charters, repealed in certain cases. SEC. 6. All existing charters, grants, franchises, special or exclusive privileges, under which an actual and bona fide organization shall not have taken place, and business been commenced in good faith, at the time of the adoption of this Constitution, shall thereafter have no validity. Franchises not extended by Legislature. SEC. 7. The Legislature shall not extend any franchise or charter, nor remit the forfeiture of any franchise or charter, of any corporation now existing, or which shall hereafter exist, under the laws of this State. 91 Cal. 340; 121 Cal. 19. Corporate property subject to eminent domain. SEC. 8. The exercise of the right of eminent domain shall never be so abridged or construed as to prevent the Legislature from taking the property and franchises of incorporated companies and subjecting them to public use the same as the property of individuals; and the exercise of the police power of the State shall never be so abridged or construed as to permit corporations to conduct their business in such manner as to infringe the rights of individuals or the general well-being of the State. Limitation on business of corporations. SEC. 9. No corporation shall engage in any business other than that expressly anthorized in its charter or the law under which it may have been or may hereafter be organized; nor shall it hold for a longer period than five years any real estate, except such as may be necessary for carrying on its business. 101 Cal. 465; 107 Cal. 643; 133 Cal. 612; 143 Cal. 206. Liabilities not released by transfer of franchise. SEC. 10. The Legislature shall not pass any laws permitting the leasing or alienation of any franchise, so as to relieve the franchise or property held thereunder from the liabilities of the lessor or grantor, lessee or grantee, contracted or incurred in the operation, use, or enjoyment of such franchise, or any of its privileges. 116 Cal. 100. Issuance of stock. SEC. 11. 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. The |