Shares in a corporation are freely transferable by sale, gift, or pledge unless a contract restricts the transfer.

Question

Quizplus · Accepted Answer

This statement is true. In general, shares in a corporation can be transferred by sale, gift, or pledge unless there is a legal restriction or a contractual agreement that limits or prohibits the transfer. Such restrictions may be imposed by the corporation's charter, bylaws, shareholder agreements, or other legal arrangements. However, even in the absence of such restrictions, there may be practical limitations on the transferability of shares, such as the lack of a market or demand for the shares, or the need to comply with securities laws and regulations.

Shares in a Corporation Are Freely Transferable by Sale, Gift