Utah Code » Title 16, Chapter 11 — Professional Corporation Act
Utah Code

Utah Code § 16-11-7 (2026)

Issuance of shares of capital stock -- Restrictions

✓ laws through the 2026 General Session (checked Sept. 2026)
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A professional corporation may issue the shares of its capital stock and a shareholder may voluntarily transfer shares of capital stock in a professional corporation only to:
persons who are duly licensed to render the same specific professional services as those for which the corporation was organized; or
persons other than those meeting the requirements of Subsection (1)(a) to the extent and in the proportions allowed by the applicable licensing act for the profession for which the corporation is organized.
Any shares issued in violation of this section are void.

Amended by Chapter 261, 2000 General Session

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 1988–2026 · leading case: Berrett v. Purser & Edwards, 876 P.2d 367 (Utah 1994).
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Berrett v. Purser & Edwards, 876 P.2d 367 (Utah 1994). · cites it 18× “" Utah Code Ann. § 16-11-7 . In addition, a professional corporation may render "one specific type of professional service and services ancillary thereto," but may not otherwise engage in general business activities.”
Riche v. North Ogden Prof'l Corp., 763 P.2d 1210 (Utah Ct. App. 1988). · cites it 5× “Utah Code Ann. § 16-11-7 (1987) (emphasis added).”
Tanasse v. Snow, 929 P.2d 351 (Utah Ct. App. 1996). · cites it 2× “Utah Code Ann. § 16-11-7 (1987)(emphasis added).”
Poulson P.C. v. Smith, 2026 UT App 54. · cites it 9× “Section 16-11-7 reads in full as follows: (1) A professional corporation may issue the shares of its capital stock and a shareholder may voluntarily transfer shares of capital stock in a professional corporation only to: (a) persons who are duly licensed to render the same…”
Utah Code § 16-11-7(1): 1 case
Poulson P.C. v. Smith, 2026 UT App 54. “Section 16-11-7 reads in full as follows: (1) A professional corporation may issue the shares of its capital stock and a shareholder may voluntarily transfer shares of capital stock in a professional corporation only to: (a) persons who are duly licensed to render the same…”
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