48-101-611 - Required statement to appear on each share certificate.

48-101-611. Required statement to appear on each share certificate.

(a)  The following statement must appear conspicuously on each share certificate issued by a professional corporation:  

The transfer of shares of a professional corporation is restricted by the provisions of this part, and is subject to further restriction imposed from time to time by the licensing authority. Shares of a professional corporation are also subject to a statutory compulsory repurchase obligation.

(b)  Within a reasonable time after the issuance or transfer of shares of a professional corporation that do not contain such statement, the corporation shall send the shareholders a written notice containing the statement required by subsection (a).

[Acts 1992, ch. 698, § 1; T.C.A., § 48-3-611.]