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,
gives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that the transferee 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.
(Added to NRS by 1989, 943)
Structure Nevada Revised Statutes
Chapter 78A - Close Corporations
NRS 78A.010 - Applicability of chapter.
NRS 78A.013 - Form required for filing of records.
NRS 78A.015 - Filing of records written in language other than English.
NRS 78A.017 - Cancellation of filings.
NRS 78A.020 - Filing requirements; required and optional provisions of articles of incorporation.
NRS 78A.030 - Procedure for existing corporation to become close corporation.
NRS 78A.050 - Transfer of shares prohibited; exceptions.
NRS 78A.060 - Effect of attempt to transfer shares in violation of prohibition.
NRS 78A.070 - Shareholders’ agreements: Authority to enter; effect; amendment.
NRS 78A.080 - Shareholders’ agreements: Validity.
NRS 78A.090 - Operation without board of directors; elimination and reinstatement of board.
NRS 78A.110 - Records signed, acknowledged or verified by person acting in more than one capacity.
NRS 78A.120 - Limitation on liability of shareholders.
NRS 78A.130 - Merger or share exchange; sale, lease or exchange of assets.
NRS 78A.140 - Appointment of custodian, receiver or provisional director.
NRS 78A.170 - Time of termination of status.
NRS 78A.180 - Voluntary termination of status.
NRS 78A.190 - Involuntary termination of status; intervention by court.