48-101-612 - Transfer or pledge of shares. - Tennessee Statutes

48-101-612. Transfer or pledge of shares.

(a)  (1)  A shareholder of a professional corporation may transfer or pledge shares, fractional shares, and rights or options to purchase shares of the corporation only to individuals, general partnerships, professional limited liability companies and professional corporations qualified under § 48-101-610 to be issued shares.

     (2)  Nothing in this section shall be construed as prohibiting such a shareholder from pledging shares to a financial institution as collateral for a loan.

(b)  A transfer of shares made in violation of subsection (a), except one made by operation of law or court judgment, is void.

[Acts 1992, ch. 698, § 1; 1994, ch. 868, § 8; T.C.A., § 48-3-612.]