Missouri 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. In the state of Missouri, a Statement or Legend on Stock Certificate known as the "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption" is a crucial legal document that sets forth certain restrictions on the transfer of stock within the state. This statement or legend is typically found on stock certificates, serving as a notice to shareholders and potential investors about the conditions and limitations tied to the stock being issued. The purpose of this Notice of Restriction is to disclose that the stock in question has not been registered with the U.S. Securities and Exchange Commission (SEC) and, therefore, cannot be freely transferred or sold outside the state of Missouri. It signifies that the stock falls under the "Intrastate Exemption" rule, which means its transfer is limited to residents of Missouri or entities operating primarily within the state. The Missouri Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may come in various types or variations depending on the specific circumstances or underlying legal requirements: 1. "Limited Transferability within Missouri": This type of statement indicates that the stock can only be transferred between Missouri residents or entities conducting business primarily within the state. Any transfer or sale attempted outside of Missouri is subject to legal restrictions. 2. "Restricted Transfer — Intrastate Exemption Rule": This variant of the Notice of Restriction highlights that the stock issuance falls within the exemption provided by the Intrastate Exemption rule, limiting its transferability to intrastate transactions only. 3. "Non-SEC Registered Stock — Intrastate Transfer Only": This specific form of the statement clarifies that the stock has not been registered with the SEC and can only be transferred within the state of Missouri. 4. "Intrastate Transfer Restriction — Unregistered Stock Offering": This variation emphasizes both the restriction on intrastate transfer and the fact that the stock offering has not been registered with the SEC, making it ineligible for cross-state transfer. It is crucial for shareholders and potential investors to understand the implications of the Missouri Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption. Any attempt to transfer or sell the stock outside of Missouri may result in legal consequences. It is advisable to consult legal professionals or financial advisors to ensure compliance with these restrictions and to fully understand the limitations associated with the stock in question.

In the state of Missouri, a Statement or Legend on Stock Certificate known as the "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption" is a crucial legal document that sets forth certain restrictions on the transfer of stock within the state. This statement or legend is typically found on stock certificates, serving as a notice to shareholders and potential investors about the conditions and limitations tied to the stock being issued. The purpose of this Notice of Restriction is to disclose that the stock in question has not been registered with the U.S. Securities and Exchange Commission (SEC) and, therefore, cannot be freely transferred or sold outside the state of Missouri. It signifies that the stock falls under the "Intrastate Exemption" rule, which means its transfer is limited to residents of Missouri or entities operating primarily within the state. The Missouri Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may come in various types or variations depending on the specific circumstances or underlying legal requirements: 1. "Limited Transferability within Missouri": This type of statement indicates that the stock can only be transferred between Missouri residents or entities conducting business primarily within the state. Any transfer or sale attempted outside of Missouri is subject to legal restrictions. 2. "Restricted Transfer — Intrastate Exemption Rule": This variant of the Notice of Restriction highlights that the stock issuance falls within the exemption provided by the Intrastate Exemption rule, limiting its transferability to intrastate transactions only. 3. "Non-SEC Registered Stock — Intrastate Transfer Only": This specific form of the statement clarifies that the stock has not been registered with the SEC and can only be transferred within the state of Missouri. 4. "Intrastate Transfer Restriction — Unregistered Stock Offering": This variation emphasizes both the restriction on intrastate transfer and the fact that the stock offering has not been registered with the SEC, making it ineligible for cross-state transfer. It is crucial for shareholders and potential investors to understand the implications of the Missouri Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption. Any attempt to transfer or sell the stock outside of Missouri may result in legal consequences. It is advisable to consult legal professionals or financial advisors to ensure compliance with these restrictions and to fully understand the limitations associated with the stock in question.