Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 23 - Statutory Close Corporations
Section 2323 - Transfer of shares in breach of transfer restrictions


Any attempted transfer of shares of a statutory close corporation in violation of any transfer restriction binding on the transferee shall be ineffective. Any attempted transfer of shares of a statutory close corporation in violation of any transfer restriction not binding on the transferee shall give the corporation the option, exercisable by notice and payment within 30 days after presentation of the shares for registration in the name of the transferee, to purchase the shares from the transferee for the same price and terms as contemplated for the ineffective transfer, unless such transfer was not intended to be a transfer for value.

Cross References. Section 2323 is referred to in section 2301 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS

Chapter 23 - Statutory Close Corporations

Extra - Chapter Notes

Section 2301 - Application and effect of chapter

Section 2302 - Definition of minimum vote

Section 2303 - Formation of statutory close corporations

Section 2304 - Additional contents of articles of statutory close corporations

Section 2305 - Election of an existing business corporation to become a statutory close corporation

Section 2306 - Limitations on continuation of statutory close corporation status

Section 2307 - Voluntary termination of statutory close corporation status by amendment of articles

Section 2308 - Issuance or transfer of shares of a statutory close corporation in breach of qualifying conditions

Section 2309 - Involuntary termination of statutory close corporation status; proceeding to prevent loss of status

Section 2321 - Shares

Section 2322 - Share transfer restrictions

Section 2323 - Transfer of shares in breach of transfer restrictions

Section 2324 - Corporation option where a restriction on transfer of a security is held invalid

Section 2325 - Sale option of estate of shareholder

Section 2331 - Directors

Section 2332 - Management by shareholders

Section 2333 - Appointment of custodian for statutory close corporation

Section 2334 - Appointment of provisional director in certain cases

Section 2335 - Operating corporation as partnership

Section 2336 - Fundamental changes

Section 2337 - Option of shareholder to dissolve corporation