§ 8204
61 words·~1 min read·
/ca/commercial-code/8204A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless either of the following applies:
(1)The security is certificated and the restriction is noted conspicuously on the security certificate.
(2)The security is uncertificated and the registered owner has been notified of the restriction.