Effect of issuer’s restriction on transfer

D.C. Code § 28:8-204, under Issue and Issuer..

D.C. Code § 28:8-204

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.