A. The articles of incorporation of any professional corporation shall provide for the purchase by the corporation, its shareholders, or any person duly licensed or authorized to render the service for which the corporation is organized, of all shares of its stock:
(1) held by any person who shall have become disqualified to render the professional service for which he was licensed or authorized; or
(2) which devolve by operation of law upon any person or legal entity not licensed or authorized.
B. Any purchase of shares under Paragraph (1) of Subsection A shall be effected within a period of thirty days after establishment of the disqualification. Any purchase of shares under Paragraph (2) of Subsection A shall be effected within eight months from the date of devolution. Any shares held in violation of such provisions may be cancelled by action of the board of directors.
History: 1953 Comp., § 51-22-10, enacted by Laws 1969, ch. 245, § 5.
Law reviews. — For article, "The New Mexico Professional Corporation," see 9 Nat. Res. J. 591 (1969).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 18B Am. Jur. 2d Corporations §§ 1802 to 1809, 1812 to 1814.
Construction and application of provision restricting sale or transfer of corporate stock, 2 A.L.R.2d 745.
Validity of restrictions on alienation or transfer of corporate stock, 61 A.L.R.2d 1318.
18 C.J.S. Corporations §§ 217 to 292.
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