CHAPTER 23 STATUTORY CLOSE CORPORATIONS Subchapter A. Preliminary Provisions B. Shares C. Powers, Duties and Safeguards Enactment. Chapter 23 was added December 21, 1988, P.L.1444, No.177, effective October 1, 1989. Cross References. Chapter 23 is referred to in section 1103 of this title. SUBCHAPTER A PRELIMINARY PROVISIONS Sec. 2301. Application and effect of chapter. 2302. Definition of minimum vote. 2303. Formation of statutory close corporations. 2304. Additional contents of articles of statutory close corporations. 2305. Election of an existing business corporation to become a statutory close corporation. 2306. Limitations on continuation of statutory close corporation status. 2307. Voluntary termination of statutory close corporation status by amendment of articles. 2308. Issuance or transfer of shares of a statutory close corporation in breach of qualifying conditions. 2309. Involuntary termination of statutory close corporation status; proceeding to prevent loss of status. § 2301. Application and effect of chapter. (a) General rule.--This chapter shall be applicable to a business corporation, other than a management corporation, that: (1) had elected to become a close corporation subject to Chapter B of Article III of the act of May 5, 1933 (P.L.364, No.106), known as the Business Corporation Law of 1933 (relating to close corporations), and that, as of the effective date of this chapter, had not terminated that election in the manner prescribed by statute; or (2) elects to become a statutory close corporation in the manner provided by this chapter. (b) Application of business corporation law generally.--The existence of a provision of this chapter shall not of itself create any implication that a contrary or different rule of law is or would be applicable to a business corporation that is not a statutory close corporation. This chapter shall not affect any statute or rule of law that is or would be applicable to a business corporation that is not a statutory close corporation. (c) Laws applicable to statutory close corporations.--Except as otherwise provided in this chapter, this subpart shall be generally applicable to all statutory close corporations. The specific provisions of this chapter shall control over the general provisions of this subpart. Except as otherwise provided in this article, a statutory close corporation may be simultaneously subject to this chapter and one or more other chapters of this article. (d) Transitional provisions.--The following provisions of this chapter shall not apply to a statutory close corporation existing on September 30, 1989, unless otherwise provided in a bylaw adopted in the manner provided by section 2332(b) (relating to procedure): Section 2321(b) (relating to preemptive rights) insofar as such provision authorizes the shareholders to adopt a bylaw eliminating or limiting the preemptive rights provided in that subsection. Section 2322 (relating to share transfer restrictions). Section 2323 (relating to transfer of shares in breach of transfer restrictions). If section 2323 is not applicable to the corporation, transfer restrictions (including a restriction that is held not to be authorized by section 1529 (relating to transfer of securities; restrictions)) shall be enforced in the same manner as if this article had not been enacted. Section 2325 (relating to sale option of estate of shareholder). Section 2336 (relating to fundamental changes). (e) Cross reference.--See the definition of "closely held corporation" in section 1103 (relating to definitions). (Dec. 19, 1990, P.L.834, No.198, eff. imd.) 1990 Amendment. Act 198 amended subsec. (d). Cross References. Section 2301 is referred to in section 1106 of this title.

CHAPTER 23 STATUTORY CLOSE CORPORATIONS Subchapter A. Preliminary Provisions B. Shares C. Powers, Duties and Safeguards Enactment. Chapter 23 was added December 21, 1988, P.L.1444, No.177, effective October 1, 1989. Cross References. Chapter 23 is referred to in section 1103 of this title. SUBCHAPTER A PRELIMINARY PROVISIONS Sec. 2301. Application and effect of chapter. 2302. Definition of minimum vote. 2303. Formation of statutory close corporations. 2304. Additional contents of articles of statutory close corporations. 2305. Election of an existing business corporation to become a statutory close corporation. 2306. Limitations on continuation of statutory close corporation status. 2307. Voluntary termination of statutory close corporation status by amendment of articles. 2308. Issuance or transfer of shares of a statutory close corporation in breach of qualifying conditions. 2309. Involuntary termination of statutory close corporation status; proceeding to prevent loss of status. § 2301. Application and effect of chapter. (a) General rule.--This chapter shall be applicable to a business corporation, other than a management corporation, that: (1) had elected to become a close corporation subject to Chapter B of Article III of the act of May 5, 1933 (P.L.364, No.106), known as the Business Corporation Law of 1933 (relating to close corporations), and that, as of the effective date of this chapter, had not terminated that election in the manner prescribed by statute; or (2) elects to become a statutory close corporation in the manner provided by this chapter. (b) Application of business corporation law generally.--The existence of a provision of this chapter shall not of itself create any implication that a contrary or different rule of law is or would be applicable to a business corporation that is not a statutory close corporation. This chapter shall not affect any statute or rule of law that is or would be applicable to a business corporation that is not a statutory close corporation. (c) Laws applicable to statutory close corporations.--Except as otherwise provided in this chapter, this subpart shall be generally applicable to all statutory close corporations. The specific provisions of this chapter shall control over the general provisions of this subpart. Except as otherwise provided in this article, a statutory close corporation may be simultaneously subject to this chapter and one or more other chapters of this article. (d) Transitional provisions.--The following provisions of this chapter shall not apply to a statutory close corporation existing on September 30, 1989, unless otherwise provided in a bylaw adopted in the manner provided by section 2332(b) (relating to procedure): Section 2321(b) (relating to preemptive rights) insofar as such provision authorizes the shareholders to adopt a bylaw eliminating or limiting the preemptive rights provided in that subsection. Section 2322 (relating to share transfer restrictions). Section 2323 (relating to transfer of shares in breach of transfer restrictions). If section 2323 is not applicable to the corporation, transfer restrictions (including a restriction that is held not to be authorized by section 1529 (relating to transfer of securities; restrictions)) shall be enforced in the same manner as if this article had not been enacted. Section 2325 (relating to sale option of estate of shareholder). Section 2336 (relating to fundamental changes). (e) Cross reference.--See the definition of "closely held corporation" in section 1103 (relating to definitions). (Dec. 19, 1990, P.L.834, No.198, eff. imd.) 1990 Amendment. Act 198 amended subsec. (d). Cross References. Section 2301 is referred to in section 1106 of this title.