274.017 Restricted issuance and transfer of shares.

233 words·~1 min read·/ky/chapter-274/274-017

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A professional service corporation may issue and a shareholder thereof may transfer

or pledge shares, fractional shares, and rights or options to purchase shares only to:

(a)A natural person who is authorized by law in this state or in any other state or

territory of the United States or the District of Columbia to render a

professional service permitted by the articles of incorporation of the

corporation;

(b)A partnership, domestic or foreign, in which all the partners are qualified

persons with respect to such professional corporation and in which at least one

(1)partner is authorized by the laws of this state to render a professional

service permitted by the articles of incorporation of the corporation;

(c)A professional limited liability company, domestic or foreign, authorized by

law in this state to render a professional service permitted by the articles of

organization of the limited liability company and the articles of incorporation

of the corporation; or

(d)A professional service corporation, domestic or foreign, authorized by law in

this state to render a professional service permitted by the articles of

incorporation of each corporation.

(2)Any issuance, transfer, or pledge of shares, fractional shares, or rights or options to

purchase shares in violation of this section shall be void; however, nothing herein

contained shall prohibit the transfer of shares of a professional corporation by

operation of law or court decree.