South Dakota Codified Laws 47-11C-4. Purchase at book value of shares of deceased or ineligible shareholder
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If the articles of incorporation or bylaws of a corporation subject to this chapter fail to state a price or method of determining a fixed price at which the corporation or its shareholders may purchase the shares of a deceased shareholder or shareholder no longer qualified to own shares in the corporation, then the price for such shares shall be the book value as of the end of the month immediately preceding the death or disqualification of the shareholder. Book value shall be determined from the books and records of the corporation in accordance with the regular accounting method used by the corporation.
Terms Used In South Dakota Codified Laws 47-11C-4
- Articles of incorporation: includes the articles of organization of a limited liability company. See South Dakota Codified Laws 47-11C-1.1
- 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.
- Shareholders: includes the members of a limited liability company. See South Dakota Codified Laws 47-11C-1.1
Source: SL 1977, ch 384, § 4.