Legal Opinion
Celauro v. 4c Foods Corp.
Appellate Division of the Supreme Court of the State of New York
Decided October 18, 2011PublishedCited by 3 opinions
1Opinion of the Court
“A restraint on the transferability of stock will be upheld if it is reasonable, in accordance with public policy, and effectuates a lawful purpose” (Ferolito v Vultaggio, 78 AD3d 529, 529 [2010]; see Levey v Saphier, 54 AD2d 959, 960 [1976]). Restrictions on the transfer of stock “are considered to be reasonable [where] they do not represent an ‘effective prohibition against transferability’ ” (Matter of Gusman, 178 AD2d 597, 598 [1991], quoting Allen v Biltmore Tissue Corp., 2 NY2d 534, 542 [1957]). “Restrictions on the transfer of stock are not uncommon in closely held corporations, as…
2Cases cited7 opinions
- Lanza v. WagnerNew York Court of Appeals · 1962
- Allen v. Biltmore Tissue Corp.New York Court of Appeals · 1957
- Rafe v. HindinAppellate Division of the Supreme Court of the State of New York · 1968
- Levey v. SaphierAppellate Division of the Supreme Court of the State of New York · 1976
- In re GusmanAppellate Division of the Supreme Court of the State of New York · 1991
2 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Celauro v. 4C Foods Corp.Appellate Division of the Supreme Court of the State of New York · 2020
- Celauro v. 4C Foods Corp.New York Supreme Court · 2012
- Perkins v. SmallAppellate Division of the Supreme Court of the State of New York · 2026