Restrictions on Transfer of Shares

question 35

Multiple Choice

Restrictions on transfer of shares:

• A)exist only for closely held corporations to control who may become shareholders.
• B)are valid under the common law if they are reasonable and adopted for a lawful purpose.
• C)are valid under the Revised Act if the restriction is conspicuously noted on the stock certificate.
• D)All of the above.
• E)Both (b) and (c).

---

Definitions:

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and participation in society.

Guilt

An emotional state resulting from the recognition or perception of having done something wrong or failed to do something right.

Preschooler

A child between the ages of about three and five years, who is not yet attending kindergarten or the equivalent.