Business Trusts As Substitutes for Business Corporations a Paper Read Before T

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Business Trusts As Substitutes for Business Corporations a Paper Read Before T
Guy a Guy Atwood Thompson
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18, Sec. 18.
22 BUSINESS TRUSTS AS SUBSTITUTES to the extent of holding that regardless of the act it was illegal at common law for any unincorporated so- ciety to raise transferable shares. 33 Finally, however, more than a century after the act was passed, and, in- deed, after it had been expressly repealed, 3 * it was definitely decided by the English courts (1) that the act was directed at the raising of transferable shares only in those unincorporated companies whose pur- poses were mischie
...vous and tended to the common grievance, and (2) that it was not an offense at com- mon law for an unincorporated company to have and issue transferable shares. 86 Therefore, as said by Judge Lindley: 36 "The legality at common law of such companies may, therefore, be considered as fin- ally established. " It further seems that this ground of illegality was urged chiefly because of the rule of pleading established by the courts requiring that all partners, however numerous, must be made parties de- fendant.

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