Effect of issuer's restriction on transfer

S.C. Code Ann. § 36-8-204, under Title 36, Chapter 8.

S.C. Code Ann. § 36-8-204

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.