Virgin Islands 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 Virgin Islands Statement or Legend on Stock Certificate, specifically the Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption, is a crucial component of a stock certificate issued in the Virgin Islands. This statement acts as a legal notice to potential investors conveying important information about the stock's transferability, registration status, and compliance with local regulations. In the context of the Virgin Islands, there are several types of statements or legends that may be present on a stock certificate depending on the circumstances. In this case, we will focus on the Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption. This specific statement is predominantly utilized when a stock has not undergone the registration process with the appropriate regulatory authorities or is seeking an exemption under intrastate regulations. The purpose of this statement or legend is to explicitly notify investors and potential buyers that the stock in question cannot be freely transferred or sold without complying with certain restrictions imposed by the Virgin Islands jurisdiction. These restrictions are primarily associated with the stock's registration status and the intrastate exemption requirement. By including this statement on the stock certificate, the issuer is ensuring that all parties involved are fully aware of the limitations and legal obligations associated with transferring or selling the stock. It acts as a safeguard against unknowingly engaging in prohibited activities and underscores the importance of adhering to local regulations. Key keywords: Virgin Islands, statement, legend, stock certificate, Notice of Restriction on Transfer, Stock not Registered, Intrastate Exemption.

The Virgin Islands Statement or Legend on Stock Certificate, specifically the Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption, is a crucial component of a stock certificate issued in the Virgin Islands. This statement acts as a legal notice to potential investors conveying important information about the stock's transferability, registration status, and compliance with local regulations. In the context of the Virgin Islands, there are several types of statements or legends that may be present on a stock certificate depending on the circumstances. In this case, we will focus on the Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption. This specific statement is predominantly utilized when a stock has not undergone the registration process with the appropriate regulatory authorities or is seeking an exemption under intrastate regulations. The purpose of this statement or legend is to explicitly notify investors and potential buyers that the stock in question cannot be freely transferred or sold without complying with certain restrictions imposed by the Virgin Islands jurisdiction. These restrictions are primarily associated with the stock's registration status and the intrastate exemption requirement. By including this statement on the stock certificate, the issuer is ensuring that all parties involved are fully aware of the limitations and legal obligations associated with transferring or selling the stock. It acts as a safeguard against unknowingly engaging in prohibited activities and underscores the importance of adhering to local regulations. Key keywords: Virgin Islands, statement, legend, stock certificate, Notice of Restriction on Transfer, Stock not Registered, Intrastate Exemption.