---
title: O.C.G.A. § 14-2-913. Attempted share transfer in breach of prohibition.
collection: code
id: 14-2-913
cite_as: O.C.G.A. § 14-2-913 (2025)
canonical_url: https://georgiacommons.org/code/14-2-913
md_url: https://georgiacommons.org/code/14-2-913.md
text_url: https://georgiacommons.org/code/14-2-913/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t14-(v12)-2017-pdf.pdf?sfvrsn=507372ea_0#page=323
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/14-2.md
previous: https://georgiacommons.org/code/14-2-912.md
next: https://georgiacommons.org/code/14-2-914.md
index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS / BUSINESS CORPORATIONS / CLOSE CORPORATIONS / SHARES
---

# O.C.G.A. § 14-2-913. Attempted share transfer in breach of prohibition.

(a) An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer binding on the transferee is ineffective.

(b) An attempt to transfer shares in a statutory close corporation in violation of a prohibition against transfer that is not binding on the transferee, either because the notice required by Code Section 14-2-910 was not given or because the prohibition is held unenforceable by a court, gives the corporation an option to purchase the shares from the transferee for the same price and on the same terms that he purchased them; provided, however, that in the case of a gift, the purchase shall be at a price and upon terms which are agreed upon by the parties, or if no agreement is reached, then at the fair value of the shares and upon terms as determined by a court in accordance with standards set forth in Code Section 14-2-942. To exercise its option, the corporation must give the transferee written notice within 30 days after they are presented for registration in the transferee’s name. The corporation may specifically enforce the transferee’s sale obligation upon exercise of its purchase option.

## History

Code 1981, § 14-2-913, enacted by Ga. L. 1988, p. 1070, § 1.