§ 11-8-204. Effect of Issuer’s Restriction on Transfer

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:

1. The security is certificated and the restriction is noted conspicuously on the security certificate; or
2. The security is uncertificated and the registered owner has been notified of the restriction.

History. Code 1981, § 11-8-204 , enacted by Ga. L. 1998, p. 1323, § 1.

Law reviews.

For article, “Restricting the Transferability of Stock in Georgia Corporations,” see 5 Mercer L. Rev. 242 (1954).