The State is Sovereign over its Corporations!
The State is Sovereign over its Corporations
Richard K. McPherson " the truth about Church Incorporation" excerpt of definitions
Having briefly examined the biblical definition of a corporation, let us now look at the legal definition of a corporation. According to the U.S. Supreme Court:
1. "A corporation is a creature of the state. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises and holds them subject to the laws of the state and the limitation of its charter. Its powers are limited by law. It can make no contract not authorized by its charter. Its rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation. There is a reserved right in the legislature to investigate its contracts and ascertain if it has exceeded its powers" (Hale v. Henkel, 201 U.S. 43).
2. "[A corporation is] an artificial person or legal entity created by or under the authority of the laws of a state. An association of persons created by statute as a legal entity.... The corporation is distinct from the individuals who comprise it (shareholders).... Such an entity subsists as a body politic under a special denomination, which is regarded in law as having a personality and existence distinct from that of its several members." Black's Law Dictionary West Publishing Company, 1991; 6th Edition, page 340.
3. "A corporation derives its existence and all of its powers from the State and, therefore, has only such powers as the State has conferred upon it. Power is used here to mean the legal capacity to execute and fulfill the objects and purposes for which the corporation was created, and the source of this power is the charter and the statute under which the corporation was organized." Len Young Smith and G. Gale Roberson, Smith and Roberson's Business Law, West Publishing Company, 1966, page 796.
Note: A corporation is created by, and derives its existence from, the State. In contrast, the church is created by, a creature of, derives its existence from, subject to, and obeys the Law of, Jesus Christ.
4. "Corporate existence is a privilege granted by the sovereign upon compliance with specified conditions" Len Young Smith and G. Gale Roberson, Smith and Roberson's Business Law, West Publishing Company, 1966, page 931. .
5. "Corporations are not citizens.... The term citizen... applies only to natural persons... not to artificial persons created by the legislature" Paul v. Virginia, 8 Wall. 168, 177; see also the Opinion of Field, J., in the Slaughterhouse Cases, 16 Wall.36, 99.
Note: God teaches that Christians, his church, are citizens of the household of God (Eph.2:19, Phil.3:10).
6. Every corporation has obtained a charter from the State of Incorporation. This charter is simply permission to exist given to the corporation, without which, its operations would be considered illegal. In addition to the charter are the articles of incorporation: "The objects or purposes for which a corporation is formed are expressly stated in its articles of incorporation, which delineate in general language the type of business activities in which the corporation proposes to engage" Smith and Roberson's Business Law, West Publishing Company, 1966, page 798.
Note: Is the church of God involved in any type of business activities? (Matthew 21:12, John 2:16).
7. "Instances of non-profit corporations are educational institutions, athletic clubs, library clubs, fraternities, sororities, hospitals, and organizations which have exclusively a charitable purpose" Smith and Roberson's Business Law, West Publishing Company, 1966, page 789.
The reader will notice that "churches" are conspicuously absent from this list of non-profit corporations. That is because our law-makers are fully aware that incorporation involves creation, and the Church simply cannot be created by the State. Furthermore, the Church's ordained purpose of preaching the Gospel can never be illegal, so no special license is required from the State to do so.
Though not all of our founding fathers were genuine Christians, they nevertheless understood that the Church of Christ is under the sole jurisdiction of its Lord, and that the civil magistrate therefore should not dare to encroach upon that authority. Because of this healthy respect for the Church, the very first sentence of the Bill of Rights reads as follows:
Richard K. McPherson " the truth about Church Incorporation" excerpt of definitions
Having briefly examined the biblical definition of a corporation, let us now look at the legal definition of a corporation. According to the U.S. Supreme Court:
1. "A corporation is a creature of the state. It is presumed to be incorporated for the benefit of the public. It receives certain special privileges and franchises and holds them subject to the laws of the state and the limitation of its charter. Its powers are limited by law. It can make no contract not authorized by its charter. Its rights to act as a corporation are only preserved to it so long as it obeys the laws of its creation. There is a reserved right in the legislature to investigate its contracts and ascertain if it has exceeded its powers" (Hale v. Henkel, 201 U.S. 43).
2. "[A corporation is] an artificial person or legal entity created by or under the authority of the laws of a state. An association of persons created by statute as a legal entity.... The corporation is distinct from the individuals who comprise it (shareholders).... Such an entity subsists as a body politic under a special denomination, which is regarded in law as having a personality and existence distinct from that of its several members." Black's Law Dictionary West Publishing Company, 1991; 6th Edition, page 340.
3. "A corporation derives its existence and all of its powers from the State and, therefore, has only such powers as the State has conferred upon it. Power is used here to mean the legal capacity to execute and fulfill the objects and purposes for which the corporation was created, and the source of this power is the charter and the statute under which the corporation was organized." Len Young Smith and G. Gale Roberson, Smith and Roberson's Business Law, West Publishing Company, 1966, page 796.
Note: A corporation is created by, and derives its existence from, the State. In contrast, the church is created by, a creature of, derives its existence from, subject to, and obeys the Law of, Jesus Christ.
4. "Corporate existence is a privilege granted by the sovereign upon compliance with specified conditions" Len Young Smith and G. Gale Roberson, Smith and Roberson's Business Law, West Publishing Company, 1966, page 931. .
5. "Corporations are not citizens.... The term citizen... applies only to natural persons... not to artificial persons created by the legislature" Paul v. Virginia, 8 Wall. 168, 177; see also the Opinion of Field, J., in the Slaughterhouse Cases, 16 Wall.36, 99.
Note: God teaches that Christians, his church, are citizens of the household of God (Eph.2:19, Phil.3:10).
6. Every corporation has obtained a charter from the State of Incorporation. This charter is simply permission to exist given to the corporation, without which, its operations would be considered illegal. In addition to the charter are the articles of incorporation: "The objects or purposes for which a corporation is formed are expressly stated in its articles of incorporation, which delineate in general language the type of business activities in which the corporation proposes to engage" Smith and Roberson's Business Law, West Publishing Company, 1966, page 798.
Note: Is the church of God involved in any type of business activities? (Matthew 21:12, John 2:16).
7. "Instances of non-profit corporations are educational institutions, athletic clubs, library clubs, fraternities, sororities, hospitals, and organizations which have exclusively a charitable purpose" Smith and Roberson's Business Law, West Publishing Company, 1966, page 789.
The reader will notice that "churches" are conspicuously absent from this list of non-profit corporations. That is because our law-makers are fully aware that incorporation involves creation, and the Church simply cannot be created by the State. Furthermore, the Church's ordained purpose of preaching the Gospel can never be illegal, so no special license is required from the State to do so.
Though not all of our founding fathers were genuine Christians, they nevertheless understood that the Church of Christ is under the sole jurisdiction of its Lord, and that the civil magistrate therefore should not dare to encroach upon that authority. Because of this healthy respect for the Church, the very first sentence of the Bill of Rights reads as follows:
"Congress shall make no law regarding an establishment of religion, or prohibiting the free exercise thereof" (U.S. Constitution, First Amendment).
posted by Michael Ernest : Slattery at 9:01 PM
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