16-11-7. Issuance of shares of capital stock -- Restrictions.
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16-11-7. Issuance of shares of capital stock -- Restrictions.
(1)A professional corporation may issue the shares of its capital stock and a shareholder may voluntarily transfer shares of capital stock in a professional corporation only to:
(a)persons who are duly licensed to render the same specific professional services as those for which the corporation was organized; or
(b)persons other than those meeting the requirements of Subsection (1)(a) to the extent and in the proportions allowed by the applicable licensing act for the profession for which the corporation is organized.
(2)Any shares issued in violation of this section are void.
Amended by Chapter 261 , 2000 General Session