Asked by Malaisha Easter on Jul 17, 2024

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In the states that provide statutory solutions for close corporations that fail to address the share transferability problem,which of the following is not included in these statutes?

A) A right of first refusal provision
B) An option provision
C) A buy-and-sell provision
D) A consent restraint provision

Consent Restraint Provision

A clause in a contract that limits a party's actions based upon agreed terms, which is enforceable only if all parties consent to it.

Statutory Solutions

Statutory solutions involve solving legal, social, or economic issues through the enactment of laws or statutes by a governmental body.

Close Corporations

A designation for corporations with a limited number of shareholders and operations that are more informally managed, often without a board of directors.

  • Analyze statutory solutions for addressing share transferability issues in close corporations.
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Verified Answer

KE
Kelly ElaineJul 21, 2024
Final Answer :
C
Explanation :
Although transfer restrictions are important to close corporations,many close corporation shareholders fail to address the share transferability problem.Therefore,a few states provide statutory resolution of the close corporation transferability problem.In these states,statutes offer solutions to the transferability problem that are similar to the solutions that the shareholders would have provided had they thought about the problem.Not all transferability problems are settled by the Close Corporation Supplement,however.For example,there is no statutory buy-and-sell provision.