Alabama Statement or Legend on Stock Certificate - Notice of Restriction on Transfer - Stock not Registered - Intrastate Exemption

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-1057BG
• Format: Word; Rich Text

Description

A Legend is a statement on a stock certificate noting restrictions on the transfer of the stock, often due to SEC requirements for unregistered securities. The Securities Act of 1933 regulates the initial sale of securities to the public. Some securities are exempt from coverage of the Act. Certain stock issue transactions are also exempt (i.e., exempt from registration with the Securities and Exchange Commission). The most common exempt transaction that close corporations take advantage of is the intrastate offering. To qualify for this exemption, both the investors and the issuer must all be residents of the same state. The issuer must also meet the following requirements: • 80% of its assets must be located in the state; • 80% of its income must be earned from operations within the state; and • 80% of the proceeds from the sale must be used on operations within the state. Also, for nine months after the issuance, the stock can only be sold to state residents. Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a specific requirement that may appear on a stock certificate issued by a company in Alabama. This statement or legend indicates that certain restrictions apply to the transfer of the stock, as well as the fact that the stock has not been registered with the applicable securities authorities. The Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a notice to both the holder of the stock certificate and potential buyers or transferees. It informs them that the transfer of the stock is restricted and subject to certain limitations. The purpose of this statement or legend is to comply with the relevant securities laws and regulations in Alabama. It ensures that the company issuing the stock is aware of the limitations and requirements related to intrastate exemption, which allows the issuance and transfer of securities within the Alabama jurisdiction without full registration. There can be different variations or types of Alabama Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption depending on the specific circumstances. Some of these types may include: 1. Intrastate Exemption: This type of statement or legend indicates that the stock is exempted from federal registration requirements under applicable intrastate exemption rules. It specifies that the stock can only be transferred within the state of Alabama and cannot be sold or transferred interstate. 2. Non-Registered Stock: This type of statement or legend emphasizes that the stock mentioned on the certificate has not been registered with the relevant securities authorities. It informs the holder and potential buyers that the stock is subject to additional restrictions and cannot be easily sold or transferred. 3. Restriction on Transfer: This type of statement or legend specifies that there are limitations on transferring the stock. It may stipulate that the stock can only be sold or transferred under certain conditions, such as obtaining prior approval from the company or ensuring compliance with applicable securities laws. Companies issuing stock certificates in Alabama must include a clear and concise Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption to ensure compliance with the law, maintain transparency, and protect the interests of investors.

Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a specific requirement that may appear on a stock certificate issued by a company in Alabama. This statement or legend indicates that certain restrictions apply to the transfer of the stock, as well as the fact that the stock has not been registered with the applicable securities authorities. The Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a notice to both the holder of the stock certificate and potential buyers or transferees. It informs them that the transfer of the stock is restricted and subject to certain limitations. The purpose of this statement or legend is to comply with the relevant securities laws and regulations in Alabama. It ensures that the company issuing the stock is aware of the limitations and requirements related to intrastate exemption, which allows the issuance and transfer of securities within the Alabama jurisdiction without full registration. There can be different variations or types of Alabama Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption depending on the specific circumstances. Some of these types may include: 1. Intrastate Exemption: This type of statement or legend indicates that the stock is exempted from federal registration requirements under applicable intrastate exemption rules. It specifies that the stock can only be transferred within the state of Alabama and cannot be sold or transferred interstate. 2. Non-Registered Stock: This type of statement or legend emphasizes that the stock mentioned on the certificate has not been registered with the relevant securities authorities. It informs the holder and potential buyers that the stock is subject to additional restrictions and cannot be easily sold or transferred. 3. Restriction on Transfer: This type of statement or legend specifies that there are limitations on transferring the stock. It may stipulate that the stock can only be sold or transferred under certain conditions, such as obtaining prior approval from the company or ensuring compliance with applicable securities laws. Companies issuing stock certificates in Alabama must include a clear and concise Alabama Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption to ensure compliance with the law, maintain transparency, and protect the interests of investors.