155


theless  be  valid  as  between  the  parties ;  ^  but  as  to  other
parties  title  will  not  pass  as  to  outside  parties  by  an  assign-
ment of  shares  which  is  never  made  nor  recorded  on  the
books  of  the  corporation. ^  In  the  absence  of  a  provision  in
the  charter  or  by-laws  of  the  corporation  or  a  statute  of  the
state  creating  the  same  requiring  a  record  of  transfer,  no
such  record  is  required  to  perfect  a  transfer  of  stock.^

There  are  a  number  of  well  considered  cases  which  hold
that  the  shares  of  a  corporation  are  assignable,  notwith-
standing a  by-law  of  the  corporation  limiting  their  transfer  to
the  office  of  the  company,  or  providing  that  a  transfer  shall
not  be  valid  until  registered  on  the  books  of  the  company.*


1  Baok  of  Utica  v.  Smalley,  2  Cow.
(N.  T.)  770  (1824);  s.  c.  U  Am.  Dec.
526.  See  Commercial  Bank  of  Buff-
alo V.  Kortright,  22  Wend.  (N.  Y.)
362  (1839);  s.  c.  34  Am.  Dec.  317;
20  Wend.  (N.  T.)  91;  Gilbert  v.
Manchester  Iron  Co.,  11  Wend.  (N.
Y.)  627  (1834);  Duke  v.  Cahawba
Navigation  Co.,  10  Ala.  82  (1846);
s.  c.  44  Am.  Dec.  472 ;  Dikinson  v.
Central  National  Bank,  129  Mass.
279  (1880);  s.  c.  37  Am.  Kep.  351;
Quiner  v.  Marblehead  Ins.  Co.,  10
Mass.  476  (1813);  Black  v.  Zacharie,
44  U.  S.  (3  How.)  483  (1845);  bk.  11
L.  ed.  690;-  Continental  National
Bank  v.  Eliot  National  Bank,  7  Fed.
Rep.  369  (1881).
instate  V.  Harris,  3  Ark.  570(1841);
s.  c.  36  Am.  Dec.  460;  Weston  v.
Bear  River  &  A.  W.  &  M.  Co.,  5  Cal.
