Alabama Attorney General Opinion 1979-0139

OFFICE OF THE ATTORNEY GENERAL rig- 00139 • LEE L. HALE CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA DEPUTY WILLIAM M anCUTIVE ASS W S Twines CHIEF ASSISTANT ACIMUNSTAATIVt 114111.01140 64 UNION . ALAPArA AREA (loip. MHO** J•Nit ADMINISTRATIVt ASS April 6, 1979 Honorable Chalmers Bryant Mayor, City of Andalusia Post Office Box 429 Andalusia, Alabama 36420 Municipalities-Andalusia, City Of-Conflicts of Interest Councilmember's family-held cor- poration may not do business with City of Andalusia. Dear Mayor Bryant: The Office of the Attorney General has received your opinion request asking whether the City of Andalusia may do business with a family-held corporation in which a council- man owns twelve (12) percent of the capital stock. You do state that the councilman, his two brothers, and one sister each own twelve (12) percent of the stock and their father owns the remaining fifty-two (52) percent of the stock. In addition, the councilman is an employee of the corporation. Since 1968 this office has consistently held that a family-held corporation cannot legally do business with a municipality where one of the stockholders, regardless of the percent of stock held by him, is a member of the governing body of the municipality. Enclosed please find a copy of an opinion to Honorable Andrew J. Gentry, Jr. City Attorney of Auburn, under date of March 8, 1974. These opinions have been premised on Code of Alabama 1975, §11-43-12 which. prohibits an alderman of a municipality from being interested directly or indirectly in any work, business or contract, the expense, price or consideration of which is paid from the treasury. It is, therefore, the opinion of this office, that under the facts presented in your request, the family-held corporation may not do business with the City of Andalusia. Honorable Chalmers Bryant April 6, 1979 Page Two I do hope that this hilly answers your question. If, however, we may be of further .assistance, please do not hesitate to call on us. - Sincerely, CHARLES A. GRADDICK Attorney General By- 9-gabti‘14^ CAROL JEAN SMITH Assistant Attorney General CJS:dwm Enclosure