Under the MBCA,a purchaser of shares that have a transfer restriction is not put on notice of such restriction if:
A)the restriction is public information.
B)the restriction is conspicuously noted on the face of the share certificate.
C)the restriction is conspicuously noted on the back of the share certificate.
D)he knows of the restriction when he buys the shares.

Question

Quizplus · Accepted Answer

Under the MBCA,a purchaser of the shares has notice of a restriction if it is noted conspicuously on the face or the back of a share certificate or a written statement provided to shareholders if no certificates were issued.A purchaser also has notice if he knows of the restriction when he buys the shares.

Under the MBCA,a Purchaser of Shares That Have a Transfer