Effect of attempt to transfer shares in violation of prohibition.
1. An attempt to transfer shares in a close corporation in violation of a prohibition against such a transfer is ineffective.
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,
Êgives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that he 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.
Last modified: February 26, 2006