Analysis of South Dakota Amendment H
Related, if only tangentially, to some of the current financial happenings, is Amendment H to South Dakota’s constitution which is to be voted on next month.
In brief, the amendment would allow for corporations and shareholders to to have greater flexibility in regards issuance of shares and how those shares are voted.
The full text of the amendment is as follows:
A JOINT RESOLUTION, To propose a constitutional amendment to repeal certain provisions of the State Constitution relating to corporations.
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF SOUTH DAKOTA, THE SENATE CONCURRING THEREIN:
Section 1. That at the next general election held in the state, the following amendments to Article XVII of the Constitution of the State of South Dakota, as set forth in sections 2 to 4, inclusive, of this Joint Resolution, which is hereby agreed to, shall be submitted to the electors of the state for approval.
Section 2. That Article XVII, section 5 of the Constitution of the State of South Dakota, be repealed.
§ 5. In all elections for directors or managers of a corporation, each member or shareholder may cast the whole number of his votes for one candidate, or distribute them upon two or more candidates, as he may prefer.
Section 3. That Article XVII, section 8 of the Constitution of the State of South Dakota, be repealed.
§ 8. No corporation shall issue stocks or bonds except for money, labor done, or money or property actually received; and all fictitious increase of stock or indebtedness shall be void. The stock and indebtedness of corporations shall not be increased except in pursuance of generallaw, nor without the consent of the persons holding the larger amount in value of the stock first obtained, at a meeting to be held after sixty days notice given in pursuance of law.
Section 4. That Article XVII, section 19 of the Constitution of the State of South Dakota, be repealed.
§ 19. The term “corporations,” as used in this article, shall be construed to include all joint stock companies or associations having any of the powers or privileges of corporations not possessed by individuals or partnerships.
Fewer laws. Less interference of government in the running of businesses. Sounds like a proper approach to the Constant Conservative. Vote “Yes” on amendment H.
Information regarding Amendment H may be found at Ballotpedia.
Update 05 November
Final results of the election may be found here.