CHAPTER 31

An Act to require individuals, partnerships, corporations or associations
who solicit funds to be used or who expend funds to finance or main-
tain litigation of others to file certain information with the State
Corporation Commission; to prohibit solicitation of funds until such
information has been filed; to provide penalties for violation; and to
provide for injunctive relief from violations. H 59

[H 59]

Approved September 29, 1956

Be it enacted by the General Assembly of Virginia:
1. § 1. Asused in this act the term “person” shall mean any individual,
partnership, corporation or association, whether formally or informally
organized. ‘Party’ shall include an amicus curiae.

§ 2. No person shall engage in the solicitation of funds from the
public or any segment thereof when such funds will be used in whole or
in part to commence or to prosecute further any original proceeding,
unless such person is a party or unless he has a pecuniary right or
liability therein, nor shall any person expend funds from whatever source
received to commence or to prosecute further any original proceeding,
unless such person is a party or has a pecuniary right or liability therein,
until any person shall first:

(1) If a partnership, corporation or association, file annually, in the
month of January or within sixty days after the engaging in of any activity
subject to this act, with the clerk of the State Corporation Commission (a)
acertified copy of the charter, articles of agreement or association, by-laws
or other documents, creating, governing or regulating the operations of
such partnership, corporation or association if not of record in the office of
the State Corporation Commission; (b) a certified list of the names and
addresses of the officers, directors, stockholders, members, agents and em-
ployees or other persons acting for or in behalf of such partnership, corpo-
ration or association; (c) a certified statement showing the source of each
and every contribution, membership fee, dues payment or other item of in-
come or other revenue of such partnership, corporation or association dur-
ing the preceding calendar year and if required by the State Corporation
Commission the name and address of each and every person or corporation
or association making any donation or contribution; (d) a certified state-
ment showing in detail by each transaction the expenditures of such
partnership, corporation or association during the preceding calendar year,
the objects for which made and any other information relative thereto
required by the State Corporation Commission; and (e) a certified state-
ment showing the locations of each office or branch of such partnership,
corporation or association, and the counties and cities in which it pro-
poses to or does finance or maintain litigation to which it is not a party.

(2) If an individual, file annually with the clerk of the State Corpo-
ration Commission (a) the home and each business address of such in-
dividual; (b) the name and address of any partnership, corporation or
association for whom such individual acts or purports to act; (c) the names
and addresses of all directors and officers of any such partnership, corpo-
ration or association; (d) a certified statement showing the source of each
and every contribution, dues payment or membership fee collected by such
individual during the preceding calendar year; and (e) a certified state-
ment showing in detail by each transaction the expenditures made by
such individual for the purpose of financing or maintaining litigation to
which such individual is not a party.

§ 3. If any individual shall violate any provisions of this act he shall
be guilty of a misdemeanor and may be punished as provided by law. If
any partnership, corporation or association violates any provision of this
act it may be fined not more than ten thousand dollars, and if a foreign
corporation or association shall be denied admission to do business in
Virginia, if not admitted, and if admitted, shall have its authority to do
business in Virginia revoked.

§ 4. Any individual, acting for himself or as an agent or employee
of any partnership, corporation or association, who shall file any statement,
certificate or report required by this act, knowing the same to be false or
fraudulent, shall be guilty of a felony and punished as provided in §§ 18-238
and 18-239 of the Code.

§ 5. Any individual acting as an agent or employee of any partner-
ship, corporation or association in any activity in violation of this act shall
be guilty of a misdemeanor and may be punished as provided by law.

Any court of record having civil jurisdiction shall have power
to enjoin violations of this act. A violation shall be deemed to have oc-
curred in any county or city in which any partnership, corporation or as-
sociation expends funds to commence, prosecute or further any judicial
proceeding to which it is not a party or in which it has no pecuniary right
or liability, or in which county or city it solicits, accepts or receives any
money or thing of value to be used for such purpose, without having filed
the information required in § 2, and the court or judge hearing the ap-
plication shall have power to enjoin the violator from any violation of this
act anywhere in this State.

§ 7. In any case in which a citizen files a statement with the At-
torney General, alleging on information and belief that a violation of this
act has occurred and the particulars thereof are set forth, the Attorney
General, after investigation and a finding that the complaint is well
founded, shall institute proceedings in the Circuit Court of the city of
Richmond for an injunction to restrain the violation complained of, and
such court is hereby vested with jurisdiction to grant the same.

§ 8. Ifa fine is imposed on any partnership, corporation or associa-
tion for violation of the provisions of this act, each director and officer
of such corporation or association, each member of the partnership, and
those persons responsible for the management or control of the affairs of
such partnership, corporation or association may be held jointly and sever-
ally personally liable for payment of such fine.

2. An emergency exists and this act is in force from its passage.