Nevada Revised Statutes 78A.060 – Effect of attempt to transfer shares in violation of prohibition
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1. An attempt to transfer shares in a close corporation in violation of a prohibition against such a transfer is ineffective.
Terms Used In Nevada Revised Statutes 78A.060
- 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.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
2. An attempt to transfer shares in a close corporation in violation of a prohibition against transfer that is not binding on the transferee because:
(a) The notice required by NRS 78A.040 was not given; or
(b) The prohibition is held unenforceable by a court of competent jurisdiction, gives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that the transferee purchased them. To exercise the option, the corporation must give the transferee written notice within 30 days after they receive a share certificate for registration in the name of the transferee.