Orange California 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: Orange
• 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. Orange, California is a city located in Orange County, California, known for its rich culture, vibrant community, and historical significance. The Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific type of restriction or notice that can be found on a stock certificate issued by a company based in Orange California. This statement or legend signifies that the stock being held is not registered or listed on a national stock exchange, instead, it falls under the "Intrastate Exemption." The Intrastate Exemption is a legal provision that allows the shares of a company to be sold or transferred within the same state in which the company is incorporated or operates. There might be different variations or types of the Orange California Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption, which include the following: 1. Standard Intrastate Exemption Legend: This is a basic statement on the stock certificate indicating that the shares being held are not registered with a national stock exchange and are subject to the Intrastate Exemption rule. 2. Limited Transfer Restriction Legend: This type of statement or legend might restrict the transfer of the stock to specific individuals or entities within the state. It may specify certain conditions or restrictions that must be met before the transfer can take place. 3. Non-Transferable Legend: In some cases, the Orange California Statement or Legend may indicate that the stock is entirely non-transferable, meaning it cannot be bought, sold, or assigned to any other party. 4. Qualified Purchaser Legend: This type of statement might be found on a stock certificate if the shares can only be transferred or sold to qualified purchasers who meet specific financial or investor requirements. It is crucial for stockholders or potential investors to read and understand the Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption as it provides important information about the stock's limitations and requirements for transfer within the state of Orange, California.

Orange, California is a city located in Orange County, California, known for its rich culture, vibrant community, and historical significance. The Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific type of restriction or notice that can be found on a stock certificate issued by a company based in Orange California. This statement or legend signifies that the stock being held is not registered or listed on a national stock exchange, instead, it falls under the "Intrastate Exemption." The Intrastate Exemption is a legal provision that allows the shares of a company to be sold or transferred within the same state in which the company is incorporated or operates. There might be different variations or types of the Orange California Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption, which include the following: 1. Standard Intrastate Exemption Legend: This is a basic statement on the stock certificate indicating that the shares being held are not registered with a national stock exchange and are subject to the Intrastate Exemption rule. 2. Limited Transfer Restriction Legend: This type of statement or legend might restrict the transfer of the stock to specific individuals or entities within the state. It may specify certain conditions or restrictions that must be met before the transfer can take place. 3. Non-Transferable Legend: In some cases, the Orange California Statement or Legend may indicate that the stock is entirely non-transferable, meaning it cannot be bought, sold, or assigned to any other party. 4. Qualified Purchaser Legend: This type of statement might be found on a stock certificate if the shares can only be transferred or sold to qualified purchasers who meet specific financial or investor requirements. It is crucial for stockholders or potential investors to read and understand the Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption as it provides important information about the stock's limitations and requirements for transfer within the state of Orange, California.