Carter v. Producers' Oil Co.

Citations

• 182 Pa. 551
• 38 A. 571
• 1897 Pa. LEXIS 842

Syllabus

<p>Limited partnership associations — Transfer of shares — Acts of Line 2, 1874, and June 25, 1885.</p> <p>The Act of June 25, 1885, P. L. 182, amending section 4 of the Act of June 2, 1874, P. L. 271, relating to membership in limited partnership associations, makes no distinction between a transferee of stock who is a member of the association, and one who is not; and therefore a member who purchases additional shares of the association sustains the same relation to such shares as purchasers who are not members, and he cannot vote such shares unless elected to membership upon them.</p> <p>A limited partnership association is not restricted, in the adoption of bylaws, rules and regulations for its government, to such asitisinthe power of a corporation to prescribe. Although it has some of the qualities of a corporation, yet it is, nevertheless, a partnership association, governed by the statutes under which it was organized; and, under the acts of 1874 and 1885, it has power to adopt the rule that “ any person being a member of the association who becomes the transferee of additional shares, shall have no right to participate in the subsequent business or profits of the association, or to vote upon such additional shares, unless elected to membership thereupon.”</p>