Request By:
Mr. William E. Savage, Esq.
Director
International Trade Division
Department of Commerce
24th Floor, Capital Plaza Tower
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Thomas C. Jacobs, Deputy Attorney General
In your letter to the Attorney General you have expressed the concern of some foreign manufacturing firms that KRS 381.300 through KRS 381.340 might interfere with their long-term business development plans in Kentucky. Specifically, you have asked whether or not realty owned by a firm incorporated in the United States, organized or having filed pursuant to KRS 271A et seq., would be subject to the above referenced statutory provisions if all or part of the shares of the corporation were owned by aliens.
A corporation is a legal entity distinct form its shareholders and can hold realty necessary to conduct its legitimate business. Any alien shareholder would hold personalty, the stock, instead of realty and aliens are clearly authorized by statute to take and hold personal property just as if they were citizens of Kentucky. Therefore, the escheat provisions of KRS 381.300 and KRS 381.320 would not be applicable.
Based upon the foregoing, we are of the opinion that real property owned by a firm incorporated in the United States, the shares of which are owned partially or wholly by aliens, is not subject to the escheat provisions noted above and may be properly and indefinitely held by the foreign interests.