Lahaye Bros. v. American Security Bank of Ville Platte, Inc.

KNOLL, Judge.

This appeal addresses questions relative to the pledge of 277 shares of stock in LaHaye Brothers, Inc., a closely held, family corporation, which bore a transfer restriction on the face of each certificate. The restrictive language on each certificate of LaHaye Brothers’s stock stated:

“Transfer of these shares is restricted first to the families of Elvin LaHaye and Aubrey G. LaHaye in accordance with Article XVI of the Charter, and are transferable only on the books of the Corporation by the holder hereof in person, or by Attorney, upon surrender of this Certificate properly…