State Codes and Statutes
Statutes > Rhode-island > Title-7 > Chapter-7-1 > 7-1-21SECTION 7-1-21
§ 7-1-21 Agreements as to disposition ofstock or insurance on death of stockholder. – (a) No agreement, in writing. between or among two (2) or more stockholders ina corporation, or between or among a corporation and one or more of itsstockholders, whether in either case the agreement is made by all or less thanall of the stockholders of the corporation, either previously or subsequentlyentered into, is deemed testamentary in character or for that reason invalid orunenforceable because the agreement contains a provision or provisions: (1)Regulating, in the event of the death of any stockholders, the transfer,distribution, or other disposition of all or any portion of the stock of thedeceased stockholder to his or her estate or to the corporation or to or amongthe other stockholder or stockholders of the corporation or its, his, her, ortheir assignees, transferees, or successors; or (2) Regulating the destination,distribution or other disposition of the proceeds of any policy or policies ofinsurance upon the life of any stockholder.
(b) This section is not construed to affect the rights of theheirs, next of kin, legatees, devisees, or creditors of a stockholder who hasdeceased prior to May 6, 1957.
