Montana § 35-9-204 Attempted Share Transfer In Breach Of Prohibition

Montana Statutes

§ 35-9-204 — Attempted Share Transfer In Breach Of Prohibition

Montana § 35-9-204

Title 35CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

Ch. 9MONTANA CLOSE CORPORATION ACT

Part 2Share Transfer Restrictions

This text of Montana § 35-9-204 (Attempted Share Transfer In Breach Of Prohibition) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 35-9-204 (2026).

Text

35-9-204 . Attempted share transfer in breach of prohibition.

(1)An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer binding on the transferee is ineffective.

(2)An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer that is not binding on the transferee, either because the notice required by 35-9-201 was not given or because the prohibition is held unenforceable by a court, gives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that the transferee purchased them. To exercise its option, the corporation shall give the transferee written notice within 30 days after the shares are presented for registration in the tran

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35-9-204 . Attempted share transfer in breach of prohibition. (1) An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer binding on the transferee is ineffective.
(2) An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer that is not binding on the transferee, either because the notice required by 35-9-201 was not given or because the prohibition is held unenforceable by a court, gives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that the transferee purchased them. To exercise its option, the corporation shall give the transferee written notice within 30 days after the shares are presented for registration in the transferee's name. The corporation may specifically enforce the transferee's sale obligation upon exercise of its purchase option.