Corporation Commission v. Consolidated Stage Co
In Corporation Commission v. Consolidated Stage Co., 63 Ariz. 257, 161 P.2d 110 (1945), the court held that the Commission could not require a corporation to transfer stock from one shareholder to another, stating:
The commission has no authority or jurisdiction to control the internal affairs of the corporation.
It cannot dictate who its officers shall be, whom it shall employ, who may invest money in it, nor what provisions it shall make for the recognition of its shareholders, nor the manner of transferring shares of stock upon its books. . . . Chaos would result in all corporations if the corporation commission, under the mantle of state authority, were permitted to dictate to a corporation to whom to issue and transfer its shares of stock. Id. at 263, 161 P.2d at 112.