Montana Attorney General Opinion 15-190

Opinion No. 190 Stockbrokers-Agents. HELD: A stockbroker has no legal right to employ a manager or super- visor to act as sales manager in his or its behalf in the State of Montana. unless such appointee has been a resi- dent for six months. May 3,1933 You have requested us to construe section 4040, Revised Codes 1921, as amended by section 5 of Chapter 47, Laws of 1033, in so far as it confers on or withholds from a stockbroker the right to employ a manager or super- Yisor to act as sales manager in his or its behalf in the State of Montana. The statute in question authorizes any investment company or stockbroker, to which or to whom a permit to do business has been issued by the In- \'estment Commissioner, to appoint one or more agents to represent it or him in the State of Momana. The Invest- ment Commissioner must not grant it permit to an agent to repres('nt such company or stockbroker unless he has been a resident of the State of Montana at least six months next prior to the date of application for said permit. The statute pro\'ides, however, that an offi- cer of a permitted investment company may employ one manager or supervisor, who need not qualify as to residence, to act as its sales manager in the State of Montana. The legislature in section 4026, Re- vised Codes of 1921, as amended by section 1 of Chapter 47, Laws of 193.'\, has attempted to define the term "in- vestment company," and in section 4029. Revised Codes 1921, has attempted to defin'e the term "stockbroker." Evi- dently the law distinguishes one from the other. Therefore, the terms are not used synonymously. It is our view, then, that the privi- lege which section 5, supra, extends to an investment company of employing a manager or supervisor to act as its sales manager in Montana is withheld from a stockbroker.