Where You Stand
Whereas, a corporation is a creature of the State. It is presumed to be incorporated for the benefit of the State. It receives certain public privileges and franchises, holding them subject to the statutes of the State and the limitations of its charter. Its privileges are only preserved while it obeys the statutes of its creation. There is a reserved right in the legislature to investigate its contracts to determine if it has exceeded its limited powers. The State, having chartered a corporation to make use of certain franchises, can exercise its sovereignty to inquire how those franchises have been employed, and whether they have been abused, and it can demand the corporate books and papers for that purpose. [reference Hale vs Henkel]
