Transfer by a Shareholder Clause Samples
The 'Transfer by a Shareholder' clause defines the rules and procedures governing how a shareholder may sell, assign, or otherwise transfer their shares in a company. Typically, this clause outlines any restrictions on transfer, such as requiring board approval, offering shares to existing shareholders before outsiders, or specifying conditions under which transfers are permitted. Its core function is to control changes in company ownership, protect the interests of existing shareholders, and prevent unwanted third parties from acquiring shares without oversight.
Transfer by a Shareholder. (a) No Shareholder shall have the right to sell, pledge, transfer or assign their Shares, except (i) with respect those Shares that have been transferred or have vested in another person by operation of law (i.e., the result of the death, bankruptcy, insolvency, adjudicated incompetence or dissolution of the Shareholder) or (ii) with the written consent of the Board of Trustees or its designee (which may be withheld in its sole and absolute discretion).
(b) If any transferee does not meet any investor eligibility requirements established by the Trust from time to time, or if the Board of Trustees does not consent to a sale, pledge, transfer, or assignment, the Trust reserves the right to repurchase the transferred Shares from the Shareholder's successor pursuant to Section 3, above.
(c) Any sale, pledge, transfer, or assignment not made in accordance with this Section 4 shall be void.
Transfer by a Shareholder. (a) No Shareholder shall have the right to sell, pledge, transfer or assign their Shares, except (i) with respect those Shares that have been transferred or have vested in another person by operation of law (i.e., the result of the death, bankruptcy, insolvency, adjudicated incompetence or dissolution of the Shareholder); or (ii) with the written consent of the Board of Trustees or its designee (which may be withheld in its sole and absolute discretion).