Transfer Restrictions

Transfer Restrictions

Transfer restrictions are terms that prevent the transfer of securities. They can be required by any of the following:
  1. Statute (such as the hold period restrictions required for some securities acquired pursuant to a private placement exemption).
  2. Constating documents (such as restrictions set out in the articles of incorporation of the corporation or a unanimous shareholder agreement (USA)).
  3. Contractual (such as the terms of a shareholder agreement other than a USA or a vesting agreement).

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