Foreign Corporations and Local Corporate Policy

This article will not attempt to document the thesis that there are corporate abuses or that an enabling act is less desirable than a regulatory type of statute. It is sufficient to assert or presume that there may be internal corporate abuses and that it may be desirable for some states, if they so choose, to have corporation statutes which are more than enabling acts and which limit or regulate specified aspects of corporate conduct. The question of whether it is feasible for a state to maintain a corporation statute which attempts closely to regulate the internal affairs of the corporation is then posed. The answer to such an inquiry is necessarily intertwined with the practices by which corporate charters are issued by the various states and with the federal character of our governmental structure.