In Close Corporations, Restrictions on the Transfer of Stock to "Outsiders

question 23

True/False

In close corporations, restrictions on the transfer of stock to "outsiders" are void.
A provision giving a corporation the right to purchase a shareholder's shares on the death of the shareholder is invalid.

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Definitions:

Corporation Law

A body of law governing the formation, operation, and dissolution of corporations.

Corporate Affairs

Activities and operations related to the management and governance of a company, including compliance with legal and regulatory requirements, stakeholder relations, and strategic planning.

Derivative Action

A lawsuit brought by a company shareholder against company directors, officers, or others for misconduct.

Rectification Action

A legal process aimed at correcting a mistake in a document to reflect the true intention of the parties involved.