§ 64.075.Forfeiture of Charter for Unqualified Receiver

The severest consequence in the chapter, and it falls on the corporation rather than the receiver.

If a person who is not a citizen and qualified voter of this state is appointed receiver for a domestic corporation that owns property in this state, the corporation forfeits its charter.

The corporation loses its existence for someone else’s disqualification. It did not necessarily choose the receiver — a creditor or a shareholder may have applied, and the court made the appointment.

The qualifications section already voids such an appointment as to Texas property, so the receiver’s acts rest on nothing. This adds a consequence beyond that.

The attorney general shall immediately bring suit in the nature of quo warranto for forfeiture of the charter.

Both the duty and its urgency are stated — "shall" and "immediately" — leaving no discretion about whether to act.

Quo warranto is the right vehicle, since a corporate charter is a grant from the state and that action is how the state calls a grant in.

The policy behind the section is about accountability. A corporation chartered by Texas, owning Texas property, administered by a receiver beyond Texas jurisdiction is outside the state’s reach in a way the Legislature would not accept.

The severity reflects the era. The provision belongs to a period when out-of-state control of Texas corporations — railroads above all — was a live political question.

Read as a practical matter today, the section is a strong reason to confirm a proposed receiver’s qualifications before the appointment is made, since the corporation bears the consequence of getting it wrong.