Section 57A-8-204 - Effect of issuer's restriction on transfer. - South Dakota Statutes

57A-8-204. Effect of issuer's restriction on transfer. A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:
(1) The security is certificated and the restriction is noted conspicuously on the security certificate; or
(2) The security is uncertificated and the registered owner has been notified of the restriction.

Source: SL 1998, ch 284, § 1.