CHAPTER 188

An Act to amend the Code of Virginia by adding thereto a section num-
bered 13-19.1 relating to the power of corporations to make donations
for certain purposes and to repeal § 56-4 of the Code of Virginia in re-
gard to similar matters.

[(S 246]

Approved March 9, 1954
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a section
numbered § 13-19.1 as follows:

§ 13-19.1. Every corporation organized under the laws of this State,
unless otherwise provided in its charter or by resolution of its stockholders,
shall have power, when authorized by its board of directors or executive
committee, to make gifts to any corporation, trust fund or foundation,
created or organized in the United States or in any possession thereof or
under the law of the United States or of any State or territory or of any
possession of the United States, organized and operated exclusively for
religious, charitable, scientific, literary, or educational purposes, no part of
the net earnings of which inures to the benefit of any private shareholder
or individual, and no substantial part of the activities of which is carrying
on propaganda, or otherwise attempting, to influence legislation; provided,
that a gift shall not be authorized hereunder if the donee institution shall
own more than ten per centum of the voting stock of the donor corporation
or one of its subsidiaries; and provided further, that in the case of a corpo-
ration having capital stock, gifts in respect of any fiscal year shall not in
the aggregate exceed five per centum of net income for such year computed
before federal and state taxes on income and without taking into account
any deduction for gifts, unless gifts in excess of that amount shall be
authorized by the stockholders at a regular or special] meeting. The pro-
visions of this act shall not be construed as interpreting the rights and
powers of corporations as heretofore existing. Nothing in this act shall
affect the power of any foreign corporation doing business in this State,
unless otherwise provided in its charter.

2. That § 56-4. of the Code of Virginia is repealed.
3. An emergency exists and this act shall be in force from its passage.