Kansas 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. The Kansas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific requirement imposed by the state of Kansas on stock certificates that are not registered or issued in accordance with the state's intrastate exemption regulations. This statement or legend serves as a notice to all parties involved in the transfer of such stock, providing clear information about the restriction on its transferability. When a stock certificate falls under this category, it must include the Kansas Statement or Legend on the face or back of the document. This statement acts as a legal disclaimer, ensuring compliance with the relevant state regulations. It typically contains specific wording or a brief description of the restriction, which may include the following keywords: 1. Kansas Statement or Legend: This section highlights the presence of the Kansas specific notice or restriction on the certificate, signaling compliance with the state laws. 2. Notice of Restriction on Transfer: This phrase emphasizes that the transferability of the stock is restricted in some way, further details of which will be provided in the statement. 3. Stock not Registered: Indicating that the stock in question has not been registered with the state regulatory authorities, thereby necessitating the compliance with intrastate exemption provisions. 4. Intrastate Exemption: This phrase signifies that the stock falls within the exemptions provided by the state's intrastate securities laws. Stocks meeting specific criteria, such as being sold only to in-state residents, can qualify for intrastate exemptions. To ensure validity and transparency, it is crucial for the stock certificate issuer or transfer agent to include the appropriate Kansas Statement or Legend on Stock Certificate. This ensures that all parties involved in the transfer process are aware of the applicable restrictions and comply with relevant state regulations. Please note that the exact wording or content of the legend may vary, as the specific requirements and regulations may be subject to change. Therefore, it is always advised to consult legal experts or refer to the most up-to-date state statutes and regulations to accurately represent the Kansas Statement or Legend on Stock Certificate in accordance with the current law.

The Kansas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific requirement imposed by the state of Kansas on stock certificates that are not registered or issued in accordance with the state's intrastate exemption regulations. This statement or legend serves as a notice to all parties involved in the transfer of such stock, providing clear information about the restriction on its transferability. When a stock certificate falls under this category, it must include the Kansas Statement or Legend on the face or back of the document. This statement acts as a legal disclaimer, ensuring compliance with the relevant state regulations. It typically contains specific wording or a brief description of the restriction, which may include the following keywords: 1. Kansas Statement or Legend: This section highlights the presence of the Kansas specific notice or restriction on the certificate, signaling compliance with the state laws. 2. Notice of Restriction on Transfer: This phrase emphasizes that the transferability of the stock is restricted in some way, further details of which will be provided in the statement. 3. Stock not Registered: Indicating that the stock in question has not been registered with the state regulatory authorities, thereby necessitating the compliance with intrastate exemption provisions. 4. Intrastate Exemption: This phrase signifies that the stock falls within the exemptions provided by the state's intrastate securities laws. Stocks meeting specific criteria, such as being sold only to in-state residents, can qualify for intrastate exemptions. To ensure validity and transparency, it is crucial for the stock certificate issuer or transfer agent to include the appropriate Kansas Statement or Legend on Stock Certificate. This ensures that all parties involved in the transfer process are aware of the applicable restrictions and comply with relevant state regulations. Please note that the exact wording or content of the legend may vary, as the specific requirements and regulations may be subject to change. Therefore, it is always advised to consult legal experts or refer to the most up-to-date state statutes and regulations to accurately represent the Kansas Statement or Legend on Stock Certificate in accordance with the current law.