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2022 Utah Code
Title 16 - Corporations
Chapter 6a - Utah Revised Nonprofit Corporation Act
Part 6 - Members
Section 606 - Transfers.
Universal Citation: UT Code § 16-6a-606 (2022)
Effective 5/9/2017
16-6a-606. Transfers.
Amended by Chapter 358, 2017 General Session
16-6a-606. Transfers.
- (1) Except as provided in Subsection (3), and unless otherwise provided in the articles of incorporation or the bylaws, a member of a nonprofit corporation may not transfer:
- (a) a membership; or
- (b) any right arising from a membership.
- (2) Except as provided in Subsection (3), where transfer rights have been provided in the articles of incorporation or the bylaws of a nonprofit corporation, a restriction on transfer rights may not be binding with respect to a member holding a membership issued before the adoption of the restriction, unless the restriction is approved by the affected member.
- (3)
- (a) For a water company, unless otherwise provided by the articles of incorporation or bylaws, ownership of shares is transferrable.
- (b) Any restriction on the transfer of ownership under Subsection (3)(a):
- (i) shall be reasonable;
- (ii) shall be adopted in good faith and for a legitimate purpose;
- (iii) shall be adopted in the best interest of the water company and its shareholders; and
- (iv) may not discriminate against any individual shareholder or class of shareholders, but in a company where there are classes or divisions of stock, restrictions may differ between the classes or divisions.
- (c) Nothing in this section is intended to alter any right or remedy a shareholder may have under Sections 16-6a-612, 16-6a-808, 16-6a-809, 16-6a-822, 16-6a-824, and 16-6a-825, or any other applicable law.
Amended by Chapter 358, 2017 General Session
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