S corporation shares

[appleseed]

What is the name of your state? NY
I own shares in an S-corp. The shareholder's agreement includes a clause that shares may only be willed to family by blood or marriage. I wonder which is legally upheld if I will the shares to a non family member...The will or the shareholder's agreement? I did sign off on the shareholder's agreement when I received the shares.

Thanks

 

[JoshDom1898]

If you signed the shareholders agreement, any action you take that violates that agreement would be void and you could be sued for breach of contract. If it says you can't will the shares to legal entity that is not tied to you by blood or marriage, then don't.

 

[appleseed]

thanks for the reply.....perhaps then I will suggest a revisit for the terms of the shareholder's agreement to the Board.