(a) It shall be unlawful for any shareholder of a corporate licensee under this article to transfer any stock in the corporation to any person who would be ineligible to receive a license as an individual, and any such transfer shall be null and void. If any such stockholder of a corporate licensee shall become deceased, and the heirs or devisees to whom the stock descends by descent and distribution or by will shall be ineligible to receive a license under this article, then the legal representatives of the deceased stockholder’s estate, the heirs and devisees shall have 14 months from the date of the death of the stockholder within which to sell the stock to a person eligible to receive a license under this article, with such sale to be made in accordance with the provisions of the Kansas probate code (K.S.A. 59-101 et seq.) and any amendments thereto.

(b) If the legal representatives, heirs and devisees shall fail, refuse or neglect to so convey the stock within the time prescribed in subsection (a) of this section, then the stock shall revert to and become the property of the corporation, for which the corporation shall pay to the legal representatives, heirs or devisees the book value of such stock. If the stock in any corporation shall be the subject of any trust heretofore or hereafter created, the trustee and the beneficiaries of each trustee and beneficiary of the trust who is 21 years of age or older must be eligible to receive a license, or the trustee shall be and he is hereby authorized and required, within 14 months after the effective date of the trust, to sell the stock to a person eligible to receive a license under this article, and the trustee shall hold and disburse the proceeds thereof in accordance with the terms of the trust, or the license of the corporation shall be forfeited.

(c) During the 14-month periods mentioned in this section, a corporation shall not be denied a license or have its license revoked if it meets all of the other requirements necessary to have a license as provided in this article. (Code 1981 § 38-77. Code 1995 § 114-125.)