Senate Constitutional Amendment 5. Amends Section 3, Article XII, of Constitution. Declares constitutional provision imposing stockholder's liability for debts of corporation or joint-stock association, and director's or trustee's liability to creditors and stockholders for moneys embezzled or misappropriated by officers, shall not apply to exposition company organized to conduct fairs, sports, games or exhibitions authorized by law, nor to California corporation using "Limited" or "Ltd." as last word of corporate name, subjecting stockholders of latter to such liabilities as Legislature may provide; declares section inapplicable to liabilities already incurred against stockholders in corporation created before adoption of amendment.
Popular Vote Results
Y: 602121; A: 56.4; N: 465703; B: 43.6
Senate Constitutional Amendment
Code Sections Affected
Amended Cal. Const. art. XII, section 3.
J. W. McKinley, State Senator, Thirty-eighth District; James M. Allen, State Senator, Second District
STOCKHOLDER'S LIABILITY California Proposition 16 (1928).