O.C.G.A.

O.C.G.A. § 14-3-301 (2019)

Purposes of corporation

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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(a) Every corporation incorporated under this chapter has the purpose of engaging in any lawful activity unless a more limited purpose is set forth in the articles of incorporation.

(b) A corporation engaging in an activity that is subject to regulation under another statute of this state may incorporate under this chapter only if incorporation under this chapter is not prohibited by the other statute. The corporation shall be subject to all limitations of the other statute.

History

(Code 1981, § 14-3-301, enacted by Ga. L. 1991, p. 465, § 1.)

Annotations

Cross references. - Corporations organized for religious, fraternal, or educational purposes, § 14-5-40 et seq. Corpo-

rations exempt from state income tax, § 48-7-25.

COMMENT Subsection (a) follows the approach of the Business Code and the Model Act in permitting incorporation for any lawful purpose. Former law (section 14-3-20) provided a nonexclusive list of permissible purposes. Subsection (b) is based on former section 14-3-20(b) and on the Model Act. JUDICIAL DECISIONS Cited in Bradfield v. Hospital Auth., 226 Ga. 575, 176 S.E.2d 92 (1970); Dixon

v. Georgia Indigent Legal Servs., Inc., 388 F. Supp. 1156 (S.D. Ga. 1974).

OPINIONS OF THE ATTORNEY GENERAL Editor’s notes. - In light of the similarity of the statutory provisions, opinions under former Code Section 14-3-20, are included in the annotations for this Code section. Acquiring funds or property for donation to state agency. - A nonprofit

corporation may be organized under Georgia law for the purpose of raising funds or acquiring property to donate to an agency or organization of Georgia state government. 1987 Op. Att’y Gen. No. 87-24 (decided under former § 14-3-20).

RESEARCH REFERENCES Am. Jur. 2d. - 18A Am. Jur. 2d, Corporations, § 158 et seq. C.J.S. - 7 C.J.S., Associations, § 2. 10 C.J.S., Beneficial Associations, § 7. 18 C.J.S., Corporations, § 53 et seq.

ALR. - Nonprofit purposes and character which warrant creation of nonprofit corporation, 16 ALR2d 1345.