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This Corporate Article Provision sets forth share transfer restrictions, and a right of first refusal to protect the stakes of existing shareholders in the event that another shareholder wishes to sell their shares. This provision will protect existing shareholders from unwanted shareholders joining the corporation while still allowing for an individual shareholder to sell his or her shares. This document contains numerous of the standard terms commonly used in this type of provision; however, additional language may be added by the user to ensure their needs are met. Use this form if a corporation wishes to restrict the right of first refusal by allowing requiring unwanted shares to first be offered to existing shareholders.
"Article of Incorporation Provision - Share Transfer Restrictions"