There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 47-1A-627.1 — Purposes for which restriction on transfer of shares and registration oftransfer of shares authorized--Validity and enforceability of restriction.
47-1A-627.1. Purposes for which restriction on transfer of shares and registration of transfer of shares authorized--Validity and enforceability of restriction. A restriction on the transfer or registration of transfer of shares is valid and enforceable against the holder or a transferee of the holder if the restriction is authorized by this section and its existence is noted conspicuously on the front or back of the certificate or is contained in the information statement required by § 47-1A-626. Unless so noted, a restriction is not enforceable against a person without knowledge of the restriction. A restriction on the transfer or registration of transfer of shares is authorized:
(1) To maintain the corporation's status
when it is dependent on the number or identity of its
shareholders;
(2) To preserve exemptions under federal
or state securities law;
(3) For any other reasonable
purpose.
Source: SL 2005, ch 239, § 75.
Source: SL 2005, ch 239, § 75.
Disclaimer: These codes may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.