In the states that provide statutory solutions for close corporations that fail to address the share transferability problem,which of the following is not included in these statutes?
A)A right of first refusal provision
B)An option provision
C)A buy-and-sell provision
D)A consent restraint provision

Question

Quizplus · Accepted Answer

Although transfer restrictions are important to close corporations,many close corporation shareholders fail to address the share transferability problem.Therefore,a few states provide statutory resolution of the close corporation transferability problem.In these states,statutes offer solutions to the transferability problem that are similar to the solutions that the shareholders would have provided had they thought about the problem.Not all transferability problems are settled by the Close Corporation Supplement,however.For example,there is no statutory buy-and-sell provision.

In the States That Provide Statutory Solutions for Close Corporations