In closely held corporations,stock transfer restrictions are used to achieve the corporate equivalent of delectus personae.

Question

Quizplus · Accepted Answer

This is true. Stock transfer restrictions limit the ability of shareholders to transfer their shares to other parties without first offering the shares to existing shareholders or obtaining the approval of the corporation's board of directors. This allows closely held corporations to maintain control over who owns a stake in the company and to ensure that the shareholders are aligned with the corporation's goals and values.

In Closely Held Corporations,stock Transfer Restrictions Are Used to Achieve