West Virginia 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 West Virginia Statement or Legend on Stock Certificate serves as a Notice of Restriction on Transfer for stocks that have not been registered and qualify for Intrastate Exemption. This important statement highlights the restrictions and requirements associated with the transfer of such stocks within the state of West Virginia. The West Virginia Statement or Legend on Stock Certificate ensures compliance with state regulations by alerting stockholders and potential investors of specific limitations and qualifications. The presence of this statement on a stock certificate informs individuals that the stock in question falls under the Intrastate Exemption, thus restricting its transfer exclusively within West Virginia's boundaries. Different types of West Virginia Statements or Legends on Stock Certificates may vary depending on the specific circumstances or exemptions. Some possible variations include: 1. Intrastate Exemption Legend: This statement indicates that the stock certificate falls under the West Virginia Intrastate Exemption, preventing its transfer outside the state's boundaries. It emphasizes the stock's status as an exempt security and restricts its trade to residents or entities within West Virginia. 2. Notice of Restriction on Transfer: This legend informs stockholders that there are restrictions on transferring the stock noted on the certificate. It outlines the specific conditions and eligibility criteria for intrastate transfers as per West Virginia laws and regulations. 3. Non-Registered Stock Legend: This legend signifies that the stock mentioned on the certificate has not been registered with the appropriate regulatory bodies. It informs potential investors that the stock may possess limited trade ability due to its non-registered status. 4. Compliance with West Virginia Securities Laws Legend: This legend asserts that the stock certificate holder and potential transferees agree to abide by West Virginia's securities laws and regulations. It emphasizes the importance of complying with state-specific rules, ensuring transparency, and protecting the interests of investors. 5. Limitation on Transfer or Resale Legend: This type of legend specifies any specific limitations or conditions on the transfer or resale of the stock. It may outline factors such as holding periods, minimum investment periods, or restrictions on transfers to non-accredited investors. In summary, the West Virginia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption denotes various legends or statements that communicate the limitations, conditions, and compliance requirements associated with the transfer and resale of non-registered stocks within West Virginia.

The West Virginia Statement or Legend on Stock Certificate serves as a Notice of Restriction on Transfer for stocks that have not been registered and qualify for Intrastate Exemption. This important statement highlights the restrictions and requirements associated with the transfer of such stocks within the state of West Virginia. The West Virginia Statement or Legend on Stock Certificate ensures compliance with state regulations by alerting stockholders and potential investors of specific limitations and qualifications. The presence of this statement on a stock certificate informs individuals that the stock in question falls under the Intrastate Exemption, thus restricting its transfer exclusively within West Virginia's boundaries. Different types of West Virginia Statements or Legends on Stock Certificates may vary depending on the specific circumstances or exemptions. Some possible variations include: 1. Intrastate Exemption Legend: This statement indicates that the stock certificate falls under the West Virginia Intrastate Exemption, preventing its transfer outside the state's boundaries. It emphasizes the stock's status as an exempt security and restricts its trade to residents or entities within West Virginia. 2. Notice of Restriction on Transfer: This legend informs stockholders that there are restrictions on transferring the stock noted on the certificate. It outlines the specific conditions and eligibility criteria for intrastate transfers as per West Virginia laws and regulations. 3. Non-Registered Stock Legend: This legend signifies that the stock mentioned on the certificate has not been registered with the appropriate regulatory bodies. It informs potential investors that the stock may possess limited trade ability due to its non-registered status. 4. Compliance with West Virginia Securities Laws Legend: This legend asserts that the stock certificate holder and potential transferees agree to abide by West Virginia's securities laws and regulations. It emphasizes the importance of complying with state-specific rules, ensuring transparency, and protecting the interests of investors. 5. Limitation on Transfer or Resale Legend: This type of legend specifies any specific limitations or conditions on the transfer or resale of the stock. It may outline factors such as holding periods, minimum investment periods, or restrictions on transfers to non-accredited investors. In summary, the West Virginia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption denotes various legends or statements that communicate the limitations, conditions, and compliance requirements associated with the transfer and resale of non-registered stocks within West Virginia.