Nevada Revised Statutes 78A.050 – Transfer of shares prohibited; exceptions
1. An interest in the shares of a close corporation may not be transferred, except to the extent permitted by the articles of incorporation, the bylaws, a shareholders’ agreement or a voting trust agreement.
Terms Used In Nevada Revised Statutes 78A.050
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Executor: A male person named in a will to carry out the decedent
- Trustee: A person or institution holding and administering property in trust.
2. Except as otherwise provided by the articles of incorporation, the provisions of this section do not apply to a transfer:
(a) To the corporation or to any other shareholder of the same class or series of shares.
(b) To heirs at law.
(c) That has been approved in writing by all of the holders of the shares of the corporation having voting rights.
(d) To an executor or administrator upon the death of a shareholder or to a trustee or receiver as a result of a bankruptcy, insolvency, dissolution or similar proceeding brought by or against a shareholder.
(e) By merger or share exchange or an exchange of existing shares for other shares of a different class or series in the corporation.
(f) By a pledge as collateral for a loan that does not grant the pledgee any voting rights possessed by the pledgor.
(g) Made after the termination of the status of the corporation as a close corporation.