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Marietta Motel, Ltd. v. Rogers

Citations: 138 Ga. App. 331; 226 S.E.2d 128; 1976 Ga. App. LEXIS 2150Docket: 51893; 51894

Court: Court of Appeals of Georgia; April 5, 1976; Georgia; State Appellate Court

Narrative Opinion Summary

The appeals center on whether the appellants qualify for an exemption under the now-repealed Code Ann. 97-107 (i), which provided an exemption for subscriptions to a corporation's capital stock under specific conditions: no commission paid and either (1) no more than 15 subscribers or (2) total subscriptions not exceeding $25,000. The court referenced its prior ruling in Fortier v. Ramsey, which determined that limited partnership interests are classified as securities but clarified that this does not equate to them being corporate securities or subject to all corporate laws. Consequently, because the exemptions in Code Ann. 97-107 (i) apply solely to corporate capital stock and not to limited partnerships, the appellants did not qualify for the claimed exemption. The judgments were affirmed, with judges Deen and Webb concurring.

Legal Issues Addressed

Application of Exemption to Corporate Capital Stock

Application: The court held that the exemption under Code Ann. 97-107 (i) was applicable only to corporate capital stock, not to limited partnerships, thus denying the appellants' exemption claim.

Reasoning: Consequently, because the exemptions in Code Ann. 97-107 (i) apply solely to corporate capital stock and not to limited partnerships, the appellants did not qualify for the claimed exemption.

Classification of Limited Partnership Interests

Application: The court clarified that limited partnership interests are considered securities but are distinct from corporate securities, affecting their eligibility for certain exemptions.

Reasoning: The court referenced its prior ruling in Fortier v. Ramsey, which determined that limited partnership interests are classified as securities but clarified that this does not equate to them being corporate securities or subject to all corporate laws.

Exemption under Code Ann. 97-107 (i)

Application: The court examined whether the appellants qualified for an exemption related to subscriptions to a corporation's capital stock, which required specific conditions to be met.

Reasoning: The appeals center on whether the appellants qualify for an exemption under the now-repealed Code Ann. 97-107 (i), which provided an exemption for subscriptions to a corporation's capital stock under specific conditions: no commission paid and either (1) no more than 15 subscribers or (2) total subscriptions not exceeding $25,000.