Kentucky 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. A Kentucky Statement or Legend on a Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific set of requirements and limitations regarding the transfer of stock within the state of Kentucky. This particular statement or legend is typically found on stock certificates issued by companies incorporated in Kentucky. It serves as a notice to both the holder of the stock certificate and potential buyers that the stock has not been registered with the appropriate regulatory authorities and is subject to certain restrictions on its transfer. The Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption is mandated by state law and aims to ensure compliance with securities regulations. It is especially significant for companies that intend to sell their stock solely within the state of Kentucky. The purpose of this statement or legend is to protect investors by informing them that the stock has not undergone the rigorous registration process required for public trading. As a result, its transfer may be limited, and it may not be traded on national stock exchanges. Different types or variations of the Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may exist depending on the specific circumstances of the stock issuance. Some possible variations could include: 1. Limited Intrastate Transfer: This legend indicates that the stock can only be transferred within the state of Kentucky and cannot be sold or transferred across state lines. 2. Ineligible for Public Trading: This statement signifies that the stock is not eligible to be publicly traded on major stock exchanges and can only be traded privately within the state. 3. Pending Registration: This legend is used when the company has applied for registration but has not yet completed the approval process. It informs potential buyers that the stock's registration is pending and not yet finalized. 4. Exemption for Qualified Investors: This variation specifies that the stock can be sold or transferred to certain qualified or accredited investors who meet specific criteria defined by securities regulations. Overall, the Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption plays a crucial role in ensuring compliance with securities laws and protecting investors by providing transparency and limitations regarding the transferability of stock within the state of Kentucky.

A Kentucky Statement or Legend on a Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific set of requirements and limitations regarding the transfer of stock within the state of Kentucky. This particular statement or legend is typically found on stock certificates issued by companies incorporated in Kentucky. It serves as a notice to both the holder of the stock certificate and potential buyers that the stock has not been registered with the appropriate regulatory authorities and is subject to certain restrictions on its transfer. The Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption is mandated by state law and aims to ensure compliance with securities regulations. It is especially significant for companies that intend to sell their stock solely within the state of Kentucky. The purpose of this statement or legend is to protect investors by informing them that the stock has not undergone the rigorous registration process required for public trading. As a result, its transfer may be limited, and it may not be traded on national stock exchanges. Different types or variations of the Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may exist depending on the specific circumstances of the stock issuance. Some possible variations could include: 1. Limited Intrastate Transfer: This legend indicates that the stock can only be transferred within the state of Kentucky and cannot be sold or transferred across state lines. 2. Ineligible for Public Trading: This statement signifies that the stock is not eligible to be publicly traded on major stock exchanges and can only be traded privately within the state. 3. Pending Registration: This legend is used when the company has applied for registration but has not yet completed the approval process. It informs potential buyers that the stock's registration is pending and not yet finalized. 4. Exemption for Qualified Investors: This variation specifies that the stock can be sold or transferred to certain qualified or accredited investors who meet specific criteria defined by securities regulations. Overall, the Kentucky Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption plays a crucial role in ensuring compliance with securities laws and protecting investors by providing transparency and limitations regarding the transferability of stock within the state of Kentucky.