Cuyahoga Ohio 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: Cuyahoga
• 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. Cuyahoga Ohio Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption Cuyahoga Ohio is a county in the state of Ohio, known for its economic significance and vibrant business environment. In order to regulate stock transfers within the county, there are specific statements and legends that may appear on stock certificates, serving as a Notice of Restriction on Transfer. One such common statement or legend found on these certificates is related to Stock not Registered — Intrastate Exemption. The purpose of this statement or legend is to communicate that the stock being transferred has not been registered with any regulatory authority outside the borders of Cuyahoga County, Ohio, and therefore falls under the Intrastate Exemption. This exemption allows for the purchase and sale of securities within the county only, without requiring registration with federal or interstate regulatory bodies. By including this statement on the stock certificate, both the company issuing the stock and the stockholder acknowledge the restriction on the transferability of the stock. It ensures that the stock stays within the county and conforms to local regulations. Different types of Cuyahoga Ohio Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may include specific variations depending on the details or specific regulations applicable to the stock. For example: 1. Cuyahoga Ohio Statement — RestricteTransferfe— - Stock not Registered — Intrastate Exemption: This variation explicitly highlights the restricted transfer of the stock due to it not being registered and instead relying on the Intrastate Exemption. 2. Notice of Restriction on Transfer — Cuyahoga CountyOHIhi— - Stock not Registered — Intrastate Exemption: This version emphasizes the geographic jurisdiction (Cuyahoga County) along with the Notice of Restriction on Transfer and the Intrastate Exemption. 3. Stock Certificate Restriction — IntrastatExemptionio— - Cuyahoga Ohio: This form of the legend places primary emphasis on the Intrastate Exemption, followed by the Cuyahoga County jurisdiction. It is essential for both potential stockholders and companies issuing the stock to carefully read and understand the specific Cuyahoga Ohio Statements or Legends on Stock Certificates, as they play a crucial role in restricting the transferability of stock within the county and complying with local regulations.

Cuyahoga Ohio Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption Cuyahoga Ohio is a county in the state of Ohio, known for its economic significance and vibrant business environment. In order to regulate stock transfers within the county, there are specific statements and legends that may appear on stock certificates, serving as a Notice of Restriction on Transfer. One such common statement or legend found on these certificates is related to Stock not Registered — Intrastate Exemption. The purpose of this statement or legend is to communicate that the stock being transferred has not been registered with any regulatory authority outside the borders of Cuyahoga County, Ohio, and therefore falls under the Intrastate Exemption. This exemption allows for the purchase and sale of securities within the county only, without requiring registration with federal or interstate regulatory bodies. By including this statement on the stock certificate, both the company issuing the stock and the stockholder acknowledge the restriction on the transferability of the stock. It ensures that the stock stays within the county and conforms to local regulations. Different types of Cuyahoga Ohio Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may include specific variations depending on the details or specific regulations applicable to the stock. For example: 1. Cuyahoga Ohio Statement — RestricteTransferfe— - Stock not Registered — Intrastate Exemption: This variation explicitly highlights the restricted transfer of the stock due to it not being registered and instead relying on the Intrastate Exemption. 2. Notice of Restriction on Transfer — Cuyahoga CountyOHIhi— - Stock not Registered — Intrastate Exemption: This version emphasizes the geographic jurisdiction (Cuyahoga County) along with the Notice of Restriction on Transfer and the Intrastate Exemption. 3. Stock Certificate Restriction — IntrastatExemptionio— - Cuyahoga Ohio: This form of the legend places primary emphasis on the Intrastate Exemption, followed by the Cuyahoga County jurisdiction. It is essential for both potential stockholders and companies issuing the stock to carefully read and understand the specific Cuyahoga Ohio Statements or Legends on Stock Certificates, as they play a crucial role in restricting the transferability of stock within the county and complying with local regulations.