Very little happened in the field of Business Associations during the survey period. The General Assembly enacted one fairly important set of amendments to the Securities Law, and the Tennessee appellate courts handed down two or three decisions which in a large part merely reiterated principles of corporation law already well-established in this state.
Amendments to the Securities Law Broadening Grounds for Refusing or Revoking Registration of Securities: The Securities Law of 1955 among other things set up a procedure for the registration of securities intended for sale and gave the Commissioner of Insurance and Banking authority to investigate the securities and the issuer. One section of that law provided in effect that the Commissioner might refuse to register securities if he found that: (1) the sale of the securities would work or tend to work a fraud on purchasers; (2) the issuer of the securities was insolvent; or (3) statements in the prospectus were fraudulent, contained untrue material or omitted a material fact required to be stated or necessary to make the statements not misleading.
F. Hodge O'Neal,
Business Associations -- 1957 Tennessee Survey,
10 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol10/iss5/9