State Codes and Statutes

Statutes > New-york > Bsc > Article-15 > 1510

§ 1510. (a) Death or disqualification of shareholders.    A professional service corporation shall purchase or redeem the shares  of  a  shareholder  in case of his death or disqualification pursuant to  the provisions of section 1509, within six months after the  appointment  of  the  executor  or administrator or other legal representative of the  estate of such deceased shareholder, or within  six  months  after  such  disqualification,  at the book value of such shares as of the end of the  month  immediately  preceding  the  death  or  disqualification  of  the  shareholder  as determined from the books and records of the corporation  in accordance with its regular method of accounting. The certificate  of  incorporation,  the by-laws of the corporation or an agreement among the  corporation and all shareholders may modify this  section  by  providing  for  a  shorter period of purchase or redemption, or an alternate method  of determining the price to be paid for the shares, or  both.    If  the  corporation  shall  fail  to  purchase  or redeem such shares within the  required period, a successful plaintiff in  an  action  to  recover  the  purchase   price  of  such  shares  shall  also  be  awarded  reasonable  attorneys' fees and costs. Limitations on the purchase or redemption  of  shares set forth in section five hundred thirteen shall not apply to the  purchase  or  redemption  of  shares  pursuant  to this section. Nothing  herein  contained  shall  prevent  a  corporation  from  paying  pension  benefits  or  other deferred compensation to or on behalf of a former or  deceased officer, director or employee thereof as otherwise permitted by  law. The provisions of this section shall not be deemed to  require  the  purchase of the shares of a disqualified shareholder where the period of  disqualification  is for less than six months, and the shareholder again  becomes eligible to practice his profession within six months  from  the  date of disqualification.    (b) Notwithstanding the provisions of subdivision (a), the corporation  shall  not be required to purchase or redeem the shares of a deceased or  disqualified  shareholder  if  such  shares,  within  the   time   limit  prescribed  by  subdivision  (a),  are  sold  or  transferred to another  professional pursuant to the provisions of section 1511.

State Codes and Statutes

Statutes > New-york > Bsc > Article-15 > 1510

§ 1510. (a) Death or disqualification of shareholders.    A professional service corporation shall purchase or redeem the shares  of  a  shareholder  in case of his death or disqualification pursuant to  the provisions of section 1509, within six months after the  appointment  of  the  executor  or administrator or other legal representative of the  estate of such deceased shareholder, or within  six  months  after  such  disqualification,  at the book value of such shares as of the end of the  month  immediately  preceding  the  death  or  disqualification  of  the  shareholder  as determined from the books and records of the corporation  in accordance with its regular method of accounting. The certificate  of  incorporation,  the by-laws of the corporation or an agreement among the  corporation and all shareholders may modify this  section  by  providing  for  a  shorter period of purchase or redemption, or an alternate method  of determining the price to be paid for the shares, or  both.    If  the  corporation  shall  fail  to  purchase  or redeem such shares within the  required period, a successful plaintiff in  an  action  to  recover  the  purchase   price  of  such  shares  shall  also  be  awarded  reasonable  attorneys' fees and costs. Limitations on the purchase or redemption  of  shares set forth in section five hundred thirteen shall not apply to the  purchase  or  redemption  of  shares  pursuant  to this section. Nothing  herein  contained  shall  prevent  a  corporation  from  paying  pension  benefits  or  other deferred compensation to or on behalf of a former or  deceased officer, director or employee thereof as otherwise permitted by  law. The provisions of this section shall not be deemed to  require  the  purchase of the shares of a disqualified shareholder where the period of  disqualification  is for less than six months, and the shareholder again  becomes eligible to practice his profession within six months  from  the  date of disqualification.    (b) Notwithstanding the provisions of subdivision (a), the corporation  shall  not be required to purchase or redeem the shares of a deceased or  disqualified  shareholder  if  such  shares,  within  the   time   limit  prescribed  by  subdivision  (a),  are  sold  or  transferred to another  professional pursuant to the provisions of section 1511.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Bsc > Article-15 > 1510

§ 1510. (a) Death or disqualification of shareholders.    A professional service corporation shall purchase or redeem the shares  of  a  shareholder  in case of his death or disqualification pursuant to  the provisions of section 1509, within six months after the  appointment  of  the  executor  or administrator or other legal representative of the  estate of such deceased shareholder, or within  six  months  after  such  disqualification,  at the book value of such shares as of the end of the  month  immediately  preceding  the  death  or  disqualification  of  the  shareholder  as determined from the books and records of the corporation  in accordance with its regular method of accounting. The certificate  of  incorporation,  the by-laws of the corporation or an agreement among the  corporation and all shareholders may modify this  section  by  providing  for  a  shorter period of purchase or redemption, or an alternate method  of determining the price to be paid for the shares, or  both.    If  the  corporation  shall  fail  to  purchase  or redeem such shares within the  required period, a successful plaintiff in  an  action  to  recover  the  purchase   price  of  such  shares  shall  also  be  awarded  reasonable  attorneys' fees and costs. Limitations on the purchase or redemption  of  shares set forth in section five hundred thirteen shall not apply to the  purchase  or  redemption  of  shares  pursuant  to this section. Nothing  herein  contained  shall  prevent  a  corporation  from  paying  pension  benefits  or  other deferred compensation to or on behalf of a former or  deceased officer, director or employee thereof as otherwise permitted by  law. The provisions of this section shall not be deemed to  require  the  purchase of the shares of a disqualified shareholder where the period of  disqualification  is for less than six months, and the shareholder again  becomes eligible to practice his profession within six months  from  the  date of disqualification.    (b) Notwithstanding the provisions of subdivision (a), the corporation  shall  not be required to purchase or redeem the shares of a deceased or  disqualified  shareholder  if  such  shares,  within  the   time   limit  prescribed  by  subdivision  (a),  are  sold  or  transferred to another  professional pursuant to the provisions of section 1511.