440.8204 Restriction on transfer of security.
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440.8204 Restriction on transfer of security.
Sec. 8204.
A restriction on transfer of a security imposed by the issuer, even though otherwise lawful, is ineffective against a person without knowledge of the restriction unless:
(a)The security is certificated and the restriction is noted conspicuously on the certificate.
(b)The security is uncertificated and the registered owner has been notified of the restriction.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1998, Act 278 , Imd. Eff. July 27, 1998