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Los A n g e le s, March 12, 1909. Mr. ¥. R. K e lly , General Counsel. Lear S ir : In r e p ly to your ve rb a l request fo r an opinion as to the r ig h t o f the Las Vegas Land. & Water Company to d eclare dividends from funds obtained from the s a le of lo t s at Las Vegas, Nevada, I beg to submit the fo llo w in g : This corp ora tion , I understand, is organised under the laws o f Nevada. S ection 68 of the Acts of the L e g is la tu r e , approved March 16, 1903, Acts o f Nevada, 1903, page 121, p rovides as fo llo w s : ” 6 8 . I t s h a ll not be la w fu l fo r the Trustees or D ire c to rs to make any d ividen d except from the net p r o fit s a r is in g from the business o f the co rp o ra tio n } nor to d iv id e , withdraw, nor in any way pay to the stockh olders, or any o f them, any p a rt o f the c a p ita l stock o f the company; not to reduce the c a p ita l stock, unless in the manner p rescrib ed in th is A ct, or in accordance w ith the p ro v is io n s of the c e r t i f i c a t e or a r t ic le s of incorpor a t io n ; and “In case "of"any v io la t io n of the p ro visio n s o f th is " s e c tio n , the D ire c to rs or Trustees under whose adminis­tr a tio n the same may have happened, except those who may have caused th e ir dissent th ereto to be entered at la r g e on the minutes t f the B^ard o f D ire c to rs or Tru stees, a t the tim e, s h a ll in th e ir in d ivid u a l and p r iv a te c a p a c itie s , be j o i n t l y and s e v e r a lly lia b le to the co rp o ra tio n , and the c r e d ito r s th e r e o f, to the f u l l amount so d iv id e d , withdrawn or reduced, or paid ou t; p ro vid ed , that th is sectio n s h a ll not be construed to prevent a d iv is io n and d is tr ib u tio n of the c a p ita l stock of the company which shall