{"data":{"id":"us-ut/utah-code-16-6a-606","jurisdiction":"us-ut","citation":"Utah Code § 16-6a-606","heading":"Transfers.","body":"(1) Except as provided in Subsection (3), and unless otherwise provided in the articles of incorporation or the bylaws, a member of a nonprofit corporation may not transfer:\n(a) a membership; or\n(b) any right arising from a membership.\n(2) Except as provided in Subsection (3), where transfer rights have been provided in the articles of incorporation or the bylaws of a nonprofit corporation, a restriction on transfer rights may not be binding with respect to a member holding a membership issued before the adoption of the restriction, unless the restriction is approved by the affected member.\n(3)\n(a) For a water company, unless otherwise provided by the articles of incorporation or bylaws, ownership of shares is transferrable.\n(b) Any restriction on the transfer of ownership under Subsection (3)(a):\n(i) shall be reasonable;\n(ii) shall be adopted in good faith and for a legitimate purpose;\n(iii) shall be adopted in the best interest of the water company and its shareholders; and\n(iv) may not discriminate against any individual shareholder or class of shareholders, but in a company where there are classes or divisions of stock, restrictions may differ between the classes or divisions.\n(c) Nothing in this section is intended to alter any right or remedy a shareholder may have under Sections 16-6a-612, 16-6a-808, 16-6a-809, 16-6a-822, 16-6a-824, and 16-6a-825, or any other applicable law.","path":["Title 16 Corporations","Chapter 16-6a Utah Revised Nonprofit Corporation Act","Part 16-6a-6 Members"],"source_url":"https://le.utah.gov/xcode/Title16/Chapter6a/16-6a-S606.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"b1275d7c9fd40a48dd77ed7b82294110b67cca43744188d59e54d1f51f59a3ca","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-16-6a-605","next":"us-ut/utah-code-16-6a-607"},"notice":"GroundRules: Original legal text. Not legal advice."}