The articles of incorporation, bylaws, an agreement among shareholders, or an agreement between shareholders and the corporation may impose restrictions on the transfer or registration of transfer of shares of the corporation. A restriction does not affect shares issued before the restriction was adopted unless the holders of the shares are parties to the restriction agreement or voted in favor of the restriction.
S.D. Codified Laws § 47-1A-627
Restriction on transfer of shares or registration of transfer of shares in articles, bylaws, or agreements--Effect on shares
Known as the South Dakota Business Corporation Act
The act spans §§ 47–47 (383 sections).
Source: SL 2005, ch 239, § 74.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.