Alabama § 10A-4-3.01 - Issuance and Transfer of Stock.
Full text of Alabama Code of Alabama § 10A-4-3.01 — Issuance and Transfer of Stock., with citation guidance and answers to common questions.
§ 10A-4-3.01. Issuance and Transfer of Stock.
(a) A domestic professional corporation may issue stock, fractions of a share of stock, and rights or options to purchase stock only to qualified persons.
(b) Where deemed necessary by the licensing authority for any profession in order to prevent violations of the ethical standards of the profession, the licensing authority may, within its rulemaking power, by rule further restrict, condition, or abridge the authority of domestic professional corporations to issue stock, but no rule shall, of itself, have the effect of causing a stockholder of a professional corporation at the time the rule becomes effective to become a disqualified person unless and to the extent specified by the licensing authority.
(c) A stockholder of a domestic professional corporation may transfer or pledge stock, fractions of a share of stock, and rights or options to purchase stock of the professional corporation only to qualified persons.
(d) Any issuance or transfer of stock in violation of this section shall be void, however, nothing contained herein shall prohibit the transfer of stock of a domestic professional corporation by operation of law or court decree.
(e) Nothing in this section shall require domestic nonprofit professional corporations to issue stock. Domestic nonprofit professional corporations may have members and all members must be qualified persons. A licensing authority may, within its rulemaking power, by rule further restrict, condition, or abridge membership in domestic nonprofit corporations, but no rule shall, of itself, have the effect of causing a member of a domestic nonprofit professional corporation at the time the rule becomes effective to become a disqualified person unless and to the extent specified by the licensing authority.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 10A-4-3.01
What does Code of Alabama § 10A-4-3.01 cover?
Section 10A-4-3.01 ("Issuance and Transfer of Stock.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 10A-4-3.01?
A common citation format is "Code of Alabama § 10A-4-3.01" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 10A-4-3.01 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.