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RICHARD MEYERS. P. A. <br />ATTONN[T AT LAW <br />ST PAUL, MIN[NWTA 50112 <br />111�1 .NIN� <br />March 21, 1986 <br />Mr. Donald F. Pauley <br />Clerk -Administrator <br />City of Mounds View <br />2401 ffighway 10 <br />Mounds View, Minnesota 55112 <br />Re: Intoxicating Liquor Licensees <br />Dear Mr. Pauley: <br />In the early 1960's when the voters of the City of Mounds <br />View authorized the issuance of private on -sale liquor licenses, <br />the Council determined at that time that they would not pernit <br />corporate licensing. The reason given for this decision was a <br />question of enforcement of the City and State liquor laws. Since <br />it is the primary duty of the City Council to enforce said laws <br />end because of the legal difficulties of determining who said laws <br />should be enforced against, it wa.; and still is my opinion that <br />individual licensing is the host effective way to accomplis'l this <br />end. <br />A corporation is a legal entity awned by shareholders, who <br />elect e. Board of Director3 to establish policy, and ope-ated on <br />a daily basis by i.ts officers (president, Vice. -President, etc.) and <br />may furt:ier be operated by managers and otner employees. Thus, <br />when you attempt to enforce the laws, the enforcing agency has to <br />determine against which entity to bring the proceedings. At first <br />blush you would notify the corporation bit because of the diverse <br />personnel involved it becomes difficult to establish the specific <br />individual that has the responsibility for the actions of the cor- <br />poration. This becomes further complicated since the stockholders <br />may change, the directors may change, the officers may change, and <br />the operating personae: may ci,anUe. This can occur even though <br />the licensing ordinance may provide for constant notice by the cor- <br />poration of all internal changes. During the licensing process <br />when the licensing authority receives an application for a liquor <br />license by a corporation, it would be advisable to check the <br />credentials of all stockholders, directors, officers and employees <br />to deter -ire fitness for said license. <br />