Section 1. No corporation heretofore or hereafter incorporated under the laws of this state, or any other state, shall do or attempt to do any business by virtue of its charter or certificate of incorporation, in this state, without a state license therefor.

Sec. 2. Upon every corporation which has heretofore obtained, or which shall hereafter obtain a charter of certifi cate of incorporation from this state, or any foreign corporation heretofore or hereafter incorporated and doing business in this state, there shall be an annual license tax of ten dollars, to be paid between the first Monday in July and the first Monday in August of each year, to the secretary of state, who shall pay the same into the state treasury, to be paid into the general fund of the state.

Sec. 3. Any corporation formed under the laws of this state which shall fail to pay the tax provided for in the last two sections, shall, because of such failure, forfeit its charter to the state, and any foreign corporation which shall fail to pay the tax provided for in the last two sections, shall, because of such failure forfeit the right to do business in this state.

Sec. 4. It shall be the duty of the secretary of state on the first Monday of October in each year to report to the governor a list of all the corporations which have failed, neglected or refused to pay the said license tax, and the governor shall forthwith issue his proclamation, declaring under this act of the legislature, that the charters of domestic corporations will be forfeited, and the right of foreign corporations to do business in this state will be forfeited unless payment of said license tax is made as above required within sixty days from date of said proclamation, together with a penalty of five dollars in addition thereto.

Sec. 5. Said proclamation on the day of its date shall be filed in the office of the secretary of state, and within five days thereafter said secretary of state shall transmit a certified copy of said proclamation to the county clerk of each county in this state, who shall file the same in his office. Said secretary of state shall also within five days from the date of said proclamation, cause a copy thereof to be published in one issue of two daily newspapers, to be selected by the governor.

Sec. 6. At the expiration of said sixty days from the date of said proclamation, the charters of all domestic corporations who have not complied with the provisions of this

act and paid said tax, shall be forfeited to the State of California, and all foreign corporations who have not complied with the provisions of this act and paid said tax, shall forfeit the right to do business in this state.

Sec. 7. Nothing in this chapter shall be construed as imposing a license tax on educational, religious, seientific, charitable, or any corporation which is not organized for pecuniary profit.

Sec. 8. Within six months after the date of said governor's proclamation, the secretary of state shall compile a statement of the domestic corporations whose charters have been so forfeited, and of the foreign corporations whose right to do business in this state has been forfeited, and he shall furnish a certified copy thereof to each county clerk in this state, who shall file the same in his office.

Sec. 9. Any person or persons who shall exercise any powers under the charter of any such corporation after the same shall become forfeited to the state, and any person or persons who shall exercise any powers of a foreign corporation which shall have forfeited its right to do business in this state, shall be guilty of a misdemeanor.

Sec. 10. There is hereby appropriated out of any money in the state treasury not otherwise appropriated the sum of twenty-seven thousand ($27,000) dollars, for the purpose of carrying out the objects of this act, to be used by the secretary of state in the employment of a license superintendent and cashier; one permanent clerk; such other clerks from time to time as may be necessary; for the purchase of the necessary desks, furniture, stationery, books, postage, and for the necessary printing, ruling, binding and materials furnished by the state printing office, and for all other necessary incidental expenses, to be used and expended during the balance of the fifty-sixth, and during the fifty-seventh, and fifty-eighth, fiscal years, and the state controller is hereby directed to draw his warrant for any claim against said amount, the same having been approved by the state board of examiners, and the treasurer is hereby directed to pay the

same.

Sec. 11. This act shall take effect and be in force from and after its passage.

ACT 757a.

An act to amend an act entitled "An act relating to revenue and taxation, providing for a license tax upon corporations, and making an appropriation for the purpose of carrying out the objects of this act," approved March 20, 1905, by amending sections one, two, three, four, five, six, seven, eight and nine thereof, and by adding two new sections thereto, to be known as sections 10a and 10b, relating to a license tax upon corporations, and making provision for settling the affairs of corporations where said tax has not been paid, and providing a penalty for the violation thereof.

[Approved June 13, 1906.]

The people of the State of California represented in senate and assembly do enact as follows:

Section 1. Section one of an act entitled "An act relating to revenue and taxation, providing for a license tax upon corporations, and making an appropriation for the purpose of carrying out the objects of this act," approved March 20, 1905, is hereby amended so as to read as follows:

Section 1. No corporation heretofore or hereafter incorporated under the laws of this state, or of any other state, shall do or attempt to do business by virtue of its charter or certificate of incorporation, in this state, without a state license therefor.

Sec. 2. Section two of said act is hereby amended so as to read as follows:

Section 2. It shall be the duty of every corporation incorporated under the laws of this state, and of every foreign corporation now doing business, or which shall hereafter engage in business in this state, to procure annually from the secretary of state a license authorizing the transaction of such business in this state, and shall pay therefor a license tax or fee of twenty dollars, which said license tax or fee shall be due and payable on the first day of July of each and every year to the secretary of state, who shall pay the same into the state treasury. If not paid on or before the hour of four o'clock P. M. of the first day of September next thereafter, the same shall become delinquent and there shall be added thereto, as a penalty for such delinquency, the sum of ten dollars. The license tax or fee hereby provided authorizes the corporation to transact its business during the year or for any fractional part of such year in

Sec. 8. Section eight of said act is hereby amended so as to read as follows:

Section 8. On or before the thirty-first day of December of each year the secretary of state shall make a list of all domestic corporations whose charters have been so forfeited and of all foreign corporations whose right to do business in this state has been so forfeited, and shall transmit a certified copy thereof to each county clerk in this state, who shall file the same in his office.

Sec. 9. Section nine of said act is hereby amended so as to read as follows:

Section 9. It shall be unlawful for any corporation, delinquent under this act, either domestic or foreign, which has not paid the license tax or fee, together with the penalty for such delinquency, as in this act prescribed, to exercise the powers of such corporation, or to transact any business in this state, after the thirtieth day of November next following the delinquency. Each and every person who exercises any of the powers of a corporation so delinquent, either domestic or foreign, which has not paid the license tax, together with the penalty for such delinquency, or who transacts any business for or in behalf of any such corporation, after the thirtieth day of November next following the delinquency, shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars, and not exceeding one thousand dollars, or by imprisonment in the county jail not less than fifty days nor more than five hundred days, or by both such fine and imprisonment.

A new section is hereby added to this act to be known as section 10a and to read as follows:

Section 10a. In all cases of forfeiture under the provisions of this act, the directors or managers in office of the affairs of any domestic corporation, whose charter may be so forfeited, or of any foreign corporation whose right to do business in this state may be so forfeited, are deemed to be trustees of the corporation and stockholders or members of the corporation whose power or right to do business is forfeited, and have full power to settle the affairs of the corporation and to maintain or defend any action or proceeding then pending in behalf of or against any of said corporations, or to take such legal proceedings as may be necessary to fully settle the affairs of said corporation, and such directors or managers, as such trustees, may be sued in any of the courts of this state by any person having a claim against any of said corporations.

A new section is hereby added to this act to be known as Section 10h, and to read as follows:

Section 10b. At the time of filing a certified copy of artieles of incorporation of any corporation when filed on or be tween the first day of July and the following first day of December in any year, there shall be paid, in addition to all other fees required by law to be paid to secretary of state, the sum of twenty dollars, which shall be received and license receipt issued in full of the license tax payable under this act, for the then current year.

Sec. 11. This act shall take effect immediately.

ACT 757b.

An act to appropriate four thousand six hundred and five dollars ($4,605.00) to repay to certain nine hundred and twenty-one corporations five dollars each, for money erroneously collected by the secretary of state as a penalty for the non-payment of the annual license tax prior to the eighth day of August, 1905, said penalty having been erroneously collected between and including the eighth day of August, 1905, and the twelfth day of October, 1905, as appears in the decision of the supreme court in the case of Ukiah Guaranty, etc., Co., vs. Charles F. Curry, secretary of state, San Francisco number 4422.

[Approved June 13, 1906.]

The people of the State of California represented in senate and assembly, do enact as follows:

Section 1. The sum of four thousand six hundred and five dollars ($4,605.00) is hereby appropriated out of any money in the state treasury not otherwise appropriated, to repay to certain nine hundred and twenty-one corporations five dollars each, for money erroneously collected by the secretary of state as a penalty for the non-payment of the annual license tax prior to the eighth day of August, nineteen hundred and five, said penalty having been erroneously collected between and including the eighth day of August, nineteen hundred and five, and the twelfth day of October, nineteen hundred and five, as appears in the decision of the supreme court in the case of Ukiah Guaranty, etc., Co. vs Charles F. Curry, secretary of state, San Francisco, number four thousand four hundred and twenty-two.

Sec. 2. Upon the presentation of a claim by each of the corporations referred to in section one of this act, duly