Broward Florida Statement or Legend on Stock Certificate - Notice of Restriction on Transfer - Stock not Registered - Intrastate Exemption

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Broward
• 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 Broward County in Florida has specific guidelines and regulations regarding stock certificates and their transfer restrictions. One such requirement is the inclusion of a statement or legend on the stock certificate indicating a Notice of Restriction on Transfer, along with the information that the stock is not registered and exempted for intrastate use. These details aim to inform shareholders, investors, and potential buyers about the limitations and conditions associated with the stock's transferability. A "Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption" typically consists of the following information concerning the stock certificate: 1. Broward County Identification: The statement or legend will state that it pertains to Broward County, Florida, indicating the specific jurisdiction where the stock falls under these restrictions. 2. Notice of Restriction on Transfer: The statement will explicitly mention that there are limitations or restrictions on the transferability of the stock. This implies that the shares cannot be easily sold or transferred without complying with certain conditions. 3. Stock Not Registered: The legend will clearly state that the stock being referred to is not registered, signifying that it is not officially recorded with the appropriate regulatory authorities. This indicates that the stock does not carry the same level of oversight and protection as registered securities. 4. Intrastate Exemption: The statement on the stock certificate will highlight that the stock falls under an intrastate exemption. In other words, it is exempt from federal securities laws governing interstate commerce, allowing it to be traded only within the boundaries of Broward County, Florida. Different variations or types of the Broward Florida Statement or Legend on Stock Certificate, Notice of Restriction on Transfer, Stock not Registered, Intrastate Exemption may include additional details based on the specific requirements or legal framework applicable to Broward County. It is crucial for shareholders and potential investors to carefully review the exact wording and provisions within the statement or legend to understand the restrictions and limitations affecting the stock in question.

The Broward County in Florida has specific guidelines and regulations regarding stock certificates and their transfer restrictions. One such requirement is the inclusion of a statement or legend on the stock certificate indicating a Notice of Restriction on Transfer, along with the information that the stock is not registered and exempted for intrastate use. These details aim to inform shareholders, investors, and potential buyers about the limitations and conditions associated with the stock's transferability. A "Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption" typically consists of the following information concerning the stock certificate: 1. Broward County Identification: The statement or legend will state that it pertains to Broward County, Florida, indicating the specific jurisdiction where the stock falls under these restrictions. 2. Notice of Restriction on Transfer: The statement will explicitly mention that there are limitations or restrictions on the transferability of the stock. This implies that the shares cannot be easily sold or transferred without complying with certain conditions. 3. Stock Not Registered: The legend will clearly state that the stock being referred to is not registered, signifying that it is not officially recorded with the appropriate regulatory authorities. This indicates that the stock does not carry the same level of oversight and protection as registered securities. 4. Intrastate Exemption: The statement on the stock certificate will highlight that the stock falls under an intrastate exemption. In other words, it is exempt from federal securities laws governing interstate commerce, allowing it to be traded only within the boundaries of Broward County, Florida. Different variations or types of the Broward Florida Statement or Legend on Stock Certificate, Notice of Restriction on Transfer, Stock not Registered, Intrastate Exemption may include additional details based on the specific requirements or legal framework applicable to Broward County. It is crucial for shareholders and potential investors to carefully review the exact wording and provisions within the statement or legend to understand the restrictions and limitations affecting the stock in question.