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Restrictions on share transfers are common and can take almost any form. Such restrictions must be ...

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Restrictions on share transfers are common and can take almost any form. Such restrictions must be ...

Restrictions on share transfers are common and can take almost any form. Such restrictions must be set out in the corporation’s constitution and must be noted on the share certificate, otherwise
a. the shares are not transferable.
b. the shares have no value.
c. the restrictions are not binding on a purchaser who has no notice of them.
d. a preemptive right is created.
e. any transfer will be ultra vires.

Textbook

The Law and Business Administration in Canada

Edition: 14^th

Authors: Smyth, Soberman, Easson, McGill

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Ashorn Author

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