Question
Assume the following facts: (1) Pam, a partner at ABC Partnership, transfers 1000 shares of stock to her partnership; (2) The terms of her transfer
Assume the following facts: (1) Pam, a partner at ABC Partnership, transfers 1000 shares of stock to her partnership; (2) The terms of her transfer allow the firm to pledge the stock as collateral for loans to the partnership; (3) The shares are put in the name of the partnership in order to facilitate their use as collateral; and (4) Pam decides to leave the firm when the value of the stock has sharply increased. Who should be entitled to the increase in value?"
ABC Partnership if it is determined that the ownership of the shares was contributed. | ||
Pam if it is determined that she merely contributed the use of the shares as collateral. | ||
"ABC because irrespective of the intent of the parties, the name on the shares was changed to ABC." | ||
A and B |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started