New Jersey § 14a:5-21

§ 14a:5-21.

(1) An agreement between two or more shareholders, if in writing and signed by the

parties thereto, may provide that in exercising any voting rights, the shares held

by them shall be voted as therein provided, or as they may agree, or as determined

in accordance with a procedure agreed upon by them. Those agreements shall be specifically enforceable. (2) A provision in the certificate of incorporation otherwise prohibited by law because

it improperly restricts the board in its management of the business of the corporation,

or improperly transfers or provides for the transfer to one or more persons named

in the certificate of incorporation or to be selected from time to time by shareholders,

all or any part of such management otherwise within the authority of the board, shall

nevertheless be valid if all the incorporators have authorized such provision in the

certificate of incorporation or the holders of record of all outstanding shares, whether

or not having voting power, have authorized such provision in an amendment to the

certificate of incorporation. If all management powers otherwise within the authority of the board are so transferred,

the certificate of incorporation may provide that the corporation shall not have a

board in which case the certificate of incorporation and any other certificate or

document requiring a statement of the number, names, and addresses of directors shall

set out in lieu thereof the name, address, and title, if any, of the person or persons

in whom such management authority is then vested. (3) A provision authorized by subsection 14A:5-21(2) shall become invalid if, to the

knowledge of the board, or of the person or persons having the management authority

otherwise in the board, (a) Subsequent to the adoption of such provision, shares are transferred or issued

to any person who takes delivery of the share certificate without notice thereof,

unless such person consents in writing to such provisions; or (b) Any shares of the corporation are listed on a national securities exchange or

regularly quoted in an over-the-counter market by one or more members of a national

or affiliated securities association. (4) If a provision authorized by subsection 14A:5-21(2) shall have become invalid

as provided in subsection 14A:5-21(3), the board, or the person or persons having

the management authority otherwise in the board, shall amend the certificate of incorporation

to delete such provision by filing a certificate of amendment in the office of the

Secretary of State. The certificate shall be executed on behalf of the corporation and shall set forth (a) The name of the corporation; (b) The date of the adoption of the amendment; (c) The deleted provision; and (d) The event set forth in subsection 14A:5-21(3) by reason of which the provision

has become invalid. (5) The effect of any provision authorized by subsection 14A:5-21(2) shall be to relieve

the directors, if any, and grant to and impose upon, the person or persons vested

with management authority otherwise in the board the rights, powers, privileges, and

liabilities, including liability for managerial acts or omissions, that are granted

to and imposed upon directors by law to the extent that, and so long as, the discretion

and powers which otherwise would be in the directors in their management of corporate

affairs are vested in such person or persons by any such provision. Such person or persons shall be deemed to be directors for purposes of applying

the provisions of this act and shall be deemed to be corporate agents for the purposes

of section 14A:3-5 . (6) If the certificate of incorporation contains a provision authorized by subsection

14A:5-21(2), the existence of such provision shall be noted conspicuously on the face

of every certificate for shares issued by such corporation, and each holder of such

certificate shall conclusively be deemed to have taken delivery with notice of such

provision. (7) As used in this section, “person” shall include a natural person, a domestic or

foreign corporation, a partnership, limited partnership, trust, firm, society, association,

joint stock company, or any other entity legally competent to contract in its own

name.