The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003
:
SHARES
(Cite as: 11 V.S.A. § 830)
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§ 830. Issuance of shares
(a) Except as provided in section 881 of this title, a professional corporation may issue shares, fractional shares, and rights or options
to purchase shares only to:
(1) individuals who are authorized by law to render a professional service described in
the corporation’s articles of incorporation;
(2) an employee stock ownership plan as defined in section 4975(e)(7) of the Internal Revenue Code, if a majority of the voting trustees of the plan are professionals licensed to furnish
the pertinent professional services, and the professional corporation’s articles of
incorporation or bylaws prohibit the direct issuance of ownership interests to anyone
other than professionals licensed to furnish the pertinent professional services;
or
(3) general partnerships in which all the partners are qualified persons with respect
to the professional corporation, and in which at least one partner is authorized by
law in this State to render a professional service described in the corporation’s
articles of incorporation.
(b) If a licensing authority with jurisdiction over a professional corporation considers
it necessary to prevent violation of the ethical standards of the profession, the
authority may, by rule, restrict or condition, or revoke in part, the authority of
a professional corporation, subject to its jurisdiction, to issue shares. A rule promulgated
under this section does not, of itself, make a shareholder of a professional corporation,
at the time the rule becomes effective, a disqualified person.
(c) Shares issued in violation of this section or a rule promulgated under this section
are void. (Added 2001, No. 77 (Adj. Sess.), § 1.)