An agreement between shareholders can restrict the transfer of a close corporation's stock.

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Shareholders of a close corporation can legally agree to restrict the transfer of the corporation's stock through a shareholders' agreement. This is often done to maintain control over the corporation and limit the involvement of outside parties. The restrictions outlined in the agreement can include conditions for transferring stock, such as obtaining approval from other shareholders or meeting specific criteria.

An Agreement Between Shareholders Can Restrict the Transfer of a Close