In re Beauchamp (Ch. 7 Case No. 12-10094, Adv. Case No. 12-01007)

Transfer restriction on stock in closely held corporation was manifestly unreasonable and void because it limited transfers to family members, while providing no means for a shareholder to realize his value in the stock if family members were unwilling or unable to buy it. Because the restrictions were void, a creditor could validly foreclose on the debtor's shares.

Wednesday, November 28, 2012