Gartner v. Pittsburgh Stock Exchange

Citations

• 247 Pa. 482
• 93 A. 759
• 1915 Pa. LEXIS 869

Syllabus

<p>Corporations — Corporations of the first-class — Stock exchange seat — Insolvency of holder — Sale of seat — Buies of exchange— Validity.</p> <p>A seat on a stock exchange, a corporation of the first-class, is not property in the eye of the law but a privilege to be held and enjoyed within limits and restrictions which the constitution and bylaws of the exchange put upon it. A provision therein for the sale of a member’s seat upon the insolvency of the member and for distribution of the proceeds to members in payment of their claims against the insolvent member before payment of anything therefor to him or those claiming through him is valid, and a member whose seat has been sold in accordance with action taken by the arbitration committee, pursuant to the rules of the exchange, has no standing in court to complain of the sale, or of the distribution of the proceeds thereof in accordance with the by-laws, particularly where he had not appealed to the board of appeals as provided by the by-laws of the exchange.</p>