Document Type

Response or Comment

Publication Date

1910

Abstract

Corporations are the creatures of their parent state and outside the borders of the state creating them they have no existence except such as is granted them by comity. Bank of Augusta v. Earle, 13 Pet. 519; Lafayette Ins. Co. v. French, 18 How. 404; Paul v. Virginia, 8 Wall. 168; Ducat v. Chicago, 10 Wall. 410; Liverpool Ins. Co. v. Massachusetts, 10 Wall, 566; Home Ins. Co. v. Morse, 20 Wall. 445; Horn Silver Mining Co. v. New York, 143 U. S. 305; Waters-Pierce Oil Co. v. Texas, 177 U. S. 28; Security Mut. L. I. Co. v. Prewitt, 202 U. S. 246. A state may prohibit a foreign corporation from doing business within its borders or allow it to do business there upon such terms and conditions as may be prescribed. Same cases. The power of the states to prescribe such conditions, however, is qualified to the extent that the foreign corporation cannot be required to give up a right or privilege held under the federal constitution or statutes. For example, a condition that the corporation shall not remove any case to the federal courts is invalid and the corporation may remove cases despite the condition. Home Ins. Co. v. Morse, supra. But for breach of such condition the state may revoke the permit to do business within its borders. Doyle v. Insurance Co., 94 U. S. 535; Security Mut. L. L Co. v. Prewitt, supra. "Thus it is admitted that a state has power to prevent a company from coming into its domain, and that it has power to take away its right to remain after having been permitted once to enter, and that right may be exercised from good or bad motives." Prewitt case, supra, page 257.


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