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Form #1523Stock ownership and transfer
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Stock ownership and transfer
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Stock ownership and
transfer.
1. The shares of the corporation may be owned only by
the corporation or by an active _________[e.g., member of the state bar]
who
a. is an employee or retired employee of that
corporation and is not a director, officer, or shareholder of any other _________[e.g.,
law] corporation, and
b. does not _________[e.g., practice law]
except on behalf of that corporation; provided, however, a member may be a
shareholder although he or she or the _________[e.g., law] corporation
by which he or she is employed, acts as _________[e.g., attorney pursuant to
court order, or acts on behalf of a legal aid or similar organization, or is
associated or employed as an attorney by another active member, law
partnership, or law corporation].
2. The shares of the corporation owned by a person who
a. dies,
b. ceases to be an eligible shareholder, or
c. becomes a disqualified person as defined in
_________[statutory citation] for a period exceeding _________ days,
shall be sold and transferred to the
corporation or its shareholders on such terms as are agreed upon by the
corporation and its shareholders. Such sale or transfer shall occur not later
than _________ months after any such death and not later than _________ days
after the date he or she ceases to be an eligible shareholder, or _________
days after the date he or she becomes a disqualified person.
3. Shares sold to the corporation by a person who
becomes a disqualified person for any reason other than disbarment [or as the
case may be] may be resold to such person if and when he or she again becomes
an eligible shareholder.
4. The share certificates of a [e.g., law] corporation
shall contain an appropriate legend setting forth the restrictions stated
Above.
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or any other commercial use is prohibited. This includes reposting forms from this
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Your use of this site constitutes your acceptance of our terms of use and your agreement
to hold this site, its officers, employees and any contributors to this site harmless
for any damage you might incur from your use of any submissions contained on this
site. If you do not agree to the above terms, please do not proceed.
These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
by these documents or on this website. Laws vary in the different states. Agreements
acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
situation. Therefore, it is important to consult legal counsel whenever utilizing
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Keywords: Stock ownership, Stock transfer.
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