Texas Business and Commerce Code

Sec. § 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:


the security is certificated and the restriction is noted conspicuously on the security certificate; or


the security is uncertificated and the registered owner has been notified of the restriction.
Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.

Last accessed
Jun. 7, 2021