KRS 279.100: Common and preferred stock -- Ownership and transfer.

(1) Only a member of a corporation organized under this chapter may own its common

stock, and neither the common stock in any such corporation nor any interest therein

shall be transferable or assignable, either by act of the parties or by operation of law,

to any person who is not eligible to be a member of the corporation.

(2) No corporation formed under this chapter shall issue common stock to a member

until it has been fully paid for, but the promissory notes of a member may be

accepted by the corporation a s full or partial payment. The corporation shall hold

the stock as security for the payment of the note, but such retention as security shall

not affect the member's right to vote.

(3) No person, other than a corporation formed under this chapter, shall at any one time

own more than five percent (5%) of the outstanding common stock of any

corporation formed under this chapter.

(4) Any such corporation may at any time, as specified in its bylaws, except when the

debts of the corporation exceed fifty percent (50%) of its assets, buy in or purchase

its common stock at the book value thereof, as conclusively determined by its board

of directors, and pay for it in cash within one (1) year thereafter.

(5) Preferred stock may be owned by and transferred to any pers on, and may be made

redeemable and retirable by the corporation on such terms and conditions as are

provided for in the articles of incorporation and printed on the face of each

certificate. Ownership of preferred stock shall not confer on the holder any r ight to

vote.