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. History. Code 1981, § 11-8-204, enacted by Ga. L. 1998, p. 1323, § 1.