Beneficial owner of shares; recognition procedure; disclosure procedure; sanctions to ensure compliance

Sec. 4. (a) A corporation may establish a recognition procedure by which the beneficial owner of shares that are registered in the name of a nominee is recognized by the corporation as the shareholder. The extent of this recognition may be determined in the recognition procedure. (b) A corporation may establish a disclosure procedure by which the names of beneficial owners of the corporation's shares shall, to the extent not prohibited by law, be disclosed to the corporation. A corporation may not establish a procedure requiring disclosure of the names of the beneficial owners of a private trust created in good faith and not for the purpose of circumventing a disclosure procedure adopted pursuant to this section. The corporation may adopt reasonable sanctions to ensure compliance with its disclosure procedure, including: (1) prohibiting the voting of; (2) providing for mandatory or optional reacquisition of; or (3) the withholding or payment into escrow of dividends with respect to; shares as to which the beneficial owner's name is not disclosed as required by the disclosure procedure.