Current Status Bill Number:3342 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970129 Primary Sponsor:Sandifer All Sponsors:Sandifer, Cotty, Fleming, Cato, Trotter, Cooper, Robinson, Rice, Barrett, Martin and Klauber Drafted Document Number:dka\3996mm.97 Residing Body:House Current Committee:Judiciary Committee 25 HJ Subject:Professional corporation, issuance of shares allowed employee; Businesses and Corporations
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19970312 Committed to Committee 25 HJ
House 19970311 Request for debate by Representative Haskins
Scott
Altman
Cato
Law
Campson
Tripp
Kennedy
Sharpe
Sandifer
J. Smith
House 19970311 Objection by Representative Sheheen
Davenport
Neal
Baxley
House 19970226 Debate adjourned until
Tuesday, 19970304
House 19970225 Debate adjourned until
Wednesday, 19970226
House 19970219 Committee report: Favorable with 26 HLCI
amendment
House 19970129 Introduced, read first time, 26 HLCI
referred to Committee
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COMMITTEE REPORT
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.