Fulton Georgia 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: Fulton
• 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. Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption: A Fulton Georgia Statement or Legend on a Stock Certificate serves as a legal notice of restriction on transfer for a particular stock. This statement is commonly included on stock certificates issued by companies that operate within the state of Georgia and qualify for the Intrastate Exemption, meaning they are exempt from registering their stock with the Securities and Exchange Commission (SEC). The purpose of the Fulton Georgia Statement or Legend is to signify that the stock certificate is not registered with the SEC and can only be transferred within the boundaries of Georgia. This restriction is imposed to comply with the regulations set forth by the Georgia Division of Securities, ensuring that sales or transfers of these unregistered stocks are limited to intrastate transactions. The inclusion of the Fulton Georgia Statement or Legend on a stock certificate demonstrates the company’s compliance with Georgia state laws regarding the sale and transfer of securities. It acts as a precautionary measure to prevent unauthorized transfers and potential violations of securities regulations. Different types of Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may include variations in wording or formatting depending on the company and its legal advisors. However, the core purpose and essence of the statement remain the same — to indicate the restriction on the transferability of the stock outside of Georgia. It is significant for investors to understand the implications of the Fulton Georgia Statement or Legend on a stock certificate. Investors should be aware that transferring or selling the stock outside of Georgia without meeting the necessary requirements and exemptions may result in legal consequences. Companies issuing stock certificates with this legend intend to protect both themselves and investors from potential legal issues, ensuring compliance with state securities laws. Therefore, it is necessary for shareholders to carefully review the legend and seek legal advice if necessary to fully comprehend the restrictions and obligations associated with the stock. In conclusion, the Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a legal notice informing investors that the stock in question is not registered with the SEC and can only be transferred within the state of Georgia. It highlights the company's compliance with Georgia state securities regulations and ensures that transfers are limited to intrastate transactions only.

Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption: A Fulton Georgia Statement or Legend on a Stock Certificate serves as a legal notice of restriction on transfer for a particular stock. This statement is commonly included on stock certificates issued by companies that operate within the state of Georgia and qualify for the Intrastate Exemption, meaning they are exempt from registering their stock with the Securities and Exchange Commission (SEC). The purpose of the Fulton Georgia Statement or Legend is to signify that the stock certificate is not registered with the SEC and can only be transferred within the boundaries of Georgia. This restriction is imposed to comply with the regulations set forth by the Georgia Division of Securities, ensuring that sales or transfers of these unregistered stocks are limited to intrastate transactions. The inclusion of the Fulton Georgia Statement or Legend on a stock certificate demonstrates the company’s compliance with Georgia state laws regarding the sale and transfer of securities. It acts as a precautionary measure to prevent unauthorized transfers and potential violations of securities regulations. Different types of Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may include variations in wording or formatting depending on the company and its legal advisors. However, the core purpose and essence of the statement remain the same — to indicate the restriction on the transferability of the stock outside of Georgia. It is significant for investors to understand the implications of the Fulton Georgia Statement or Legend on a stock certificate. Investors should be aware that transferring or selling the stock outside of Georgia without meeting the necessary requirements and exemptions may result in legal consequences. Companies issuing stock certificates with this legend intend to protect both themselves and investors from potential legal issues, ensuring compliance with state securities laws. Therefore, it is necessary for shareholders to carefully review the legend and seek legal advice if necessary to fully comprehend the restrictions and obligations associated with the stock. In conclusion, the Fulton Georgia Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a legal notice informing investors that the stock in question is not registered with the SEC and can only be transferred within the state of Georgia. It highlights the company's compliance with Georgia state securities regulations and ensures that transfers are limited to intrastate transactions only.