H 3342 General Bill, By Sandifer, Barrett, Cato, Cooper, Cotty, Fleming, 
Klauber, Martin, Rice, Robinson and Trotter
 A BILL TO AMEND SECTION 33-19-200, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO THE ISSUANCE OF SHARES BY A PROFESSIONAL CORPORATION, SO AS TO
 ALLOW FOR ISSUANCE OF SHARES TO AN EMPLOYEE NOT LICENSED TO PRACTICE THE
 PROFESSIONAL SERVICES OF THE CORPORATION UNDER CERTAIN CONDITIONS.

   01/29/97  House  Introduced and read first time HJ-20
   01/29/97  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-20
   02/19/97  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-3
   02/25/97  House  Debate adjourned until Wednesday, February 26,
                     1997 HJ-20
   02/26/97  House  Debate adjourned until Tuesday, March 4, 1997 HJ-20
   03/11/97  House  Objection by Rep. Sheheen, Davenport, Neal, &
                     Baxley HJ-26
   03/11/97  House  Requests for debate-Rep(s). Haskins, Scott,
                     Altman, Cato, Law, Campsen, Tripp, Kennedy,
                     Sharpe, Sandifer & J. Smith HJ-26
   03/12/97  House  Committed to Committee on Judiciary HJ-26

February 19, 1997

H. 3342

Introduced by Reps. Sandifer, Cotty, Fleming, Cato, Trotter, Cooper, Robinson, Rice, Barrett, Martin and Klauber

S. Printed 2/19/97--H.

Read the first time January 29, 1997.

To whom was referred a Bill (H. 3342), to amend Section 33-19-200, Code of Laws of South Carolina, 1976, relating to the issuance of shares by a professional corporation, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking lines 37-41 on page 1, and inserting:

/ (4) individuals who are employees of a professional corporation but who are not licensed to practice the professional service described in the corporation's articles of incorporation; however, these employees shall not own more than one-third of the total issued and outstanding shares of the professional corporation. This subsection does not apply to a professional corporation formed for the purpose, as described in the corporation's articles of incorporation, of rendering the professional services of an attorney or attorneys licensed to practice law in the State. /

Amend title to conform.

HARRY F. CATO, for Committee.

TO AMEND SECTION 33-19-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF SHARES BY A PROFESSIONAL CORPORATION, SO AS TO ALLOW FOR ISSUANCE OF SHARES TO AN EMPLOYEE NOT LICENSED TO PRACTICE THE PROFESSIONAL SERVICES OF THE CORPORATION UNDER CERTAIN CONDITIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 33-19-200(a) of the 1976 Code is amended to read:

"(a) A professional corporation may issue shares, fractional shares, and rights or options to purchase shares only to:

(1) individuals who are authorized by law in this or another state to render a professional service described in the corporation's articles of incorporation;

(2) general partnerships in which all the partners are qualified persons with respect to the professional corporation and in which at least one partner is authorized by law in this State to render a professional service described in the corporation's articles of incorporation;

(3) professional corporations, domestic or foreign, authorized by law in this State to render a professional service described in the corporation's articles of incorporation;

(4) individuals who are employees of a professional corporation but who are not licensed to practice the professional service described in the corporation's articles of incorporation; however, these employees shall not own more than one-third of the total issued and outstanding shares of the professional corporation."

SECTION 2. This act takes effect upon approval by the Governor.