Fact Pattern 39-1B
Bertram,Claudia,and Dynah form Eat Local,Inc. ,a closely held corporation,and agree to restrict the transfer of its stock to anyone else.The agreement provides that if one of the shareholders dies,his or her shares of stock in Eat Local will be divided to maintain the proportionate control of the survivors.
-Refer to Fact Pattern 39-1B.Later,Bertram dies.With respect to the stock transfer restriction agreement,Bertram's death most likely

Question

Quizplus · Accepted Answer

Bertram's death triggers the division provision of the stock transfer restriction agreement, which provides for the division of his shares among the surviving shareholders to maintain the proportionate control. The agreement remains valid and enforceable.

Fact Pattern 39-1B Bertram,Claudia,and Dynah Form Eat Local,Inc. ,A Closely Held Corporation,and Agree