Texas Business Organizations Code - Section 200.155. Valid Restriction On Transfer
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§ 200.155. VALID RESTRICTION ON
TRANSFER. Notwithstanding Sections 200.154 and 200.157, a
restriction placed on the transfer or registration of transfer of a
security of a real estate investment trust is valid if the
restriction reasonably:
(1) obligates the holder of the restricted security to
offer a person, including the real estate investment trust or other
holders of securities of the real estate investment trust, an
opportunity to acquire the restricted security within a reasonable
time before the transfer;
(2) obligates the real estate investment trust, to the
extent provided by this code, or another person to purchase a
security that is the subject of an agreement relating to the
purchase and sale of the restricted security;
(3) requires the real estate investment trust or the
holders of a class of the real estate investment trust's securities
to consent to a proposed transfer of the restricted security or to
approve the proposed transferee of the restricted security for the
purpose of preventing a violation of law;
(4) prohibits the transfer of the restricted security
to a designated person or group of persons and the designation is
not manifestly unreasonable; or
(5) maintains a tax advantage to the real estate
investment trust, including maintaining its status as a real estate
investment trust under the relevant provisions of the Internal
Revenue Code and regulations adopted under the Internal Revenue
Code.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 200.111 200.112 200.113 200.151 200.152 200.153 200.154 200.155 200.156 200.157 200.158 200.159 200.160 200.161 200.162
Last modified: August 11, 2007
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