Skip to main content
Loading…
This section is included in your selections.

(a) All share certificates issued by a corporation formed under this Code shall conspicuously display a summary of any and all restrictions on transfer.

(b) If the summary of share transfer restrictions required under subsection (a) of this section is too long to fit practicably on the certificates, the following notice may be used instead:

CAUTION: SHARES IN THIS CORPORATION CANNOT BE TRANSFERRED BY SALE, GIFT OR OTHERWISE, EXCEPT AS ALLOWED BY THE ARTICLES OF INCORPORATION, BYLAWS, AND SHAREHOLDER AGREEMENTS, COPIES OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST TO THE CORPORATION.

(c) All persons claiming an interest in shares of a close corporation complying with the notice requirements of this section shall be bound by the terms of documents referred to in the notice.

(d) All persons claiming an interest in shares of a close corporation not complying with the requirement of this section shall be bound by the terms of any documents associated therewith based upon actual knowledge, actual notice, or where the circumstances indicate the holder knew, or reasonably should have known, of the existence of the transfer restrictions. [Ord. 18 Part II § 12, adopted, 10/7/2008.]