Restricted Stock Legend

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Tarrant
• 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. A Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a legal notice or restriction that is often found on stock certificates issued by companies based in Tarrant, Texas. This statement or legend signifies that the stock being issued is not registered with the Securities and Exchange Commission (SEC) and can only be traded or transferred within the boundaries of the state, in accordance with intrastate exemption laws. The purpose of this statement is to inform shareholders and potential investors about the limitations on the transferability of the stock. It ensures that the stock is only sold or transferred to individuals or entities who are residents or businesses within Tarrant, Texas, as defined by local law. The Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a legal safeguard for the company issuing the stock, as it helps prevent unauthorized trading or transferring of the stock outside the jurisdiction of Tarrant, Texas. Additionally, it helps comply with relevant regulations and laws governing the intrastate sale of securities. It's worth noting that there could be variations of this statement or legend, depending on the specific requirements imposed by Tarrant, Texas, or other relevant governing bodies. Some common variations or types of Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may include: 1. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Restricted to Tarrant Residents Only: This variation explicitly restricts the transfer of the stock to only residents of Tarrant County, Texas. 2. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Intrastate Sale Only: This variation highlights that the stock can be traded or transferred within the state of Texas but is limited to intrastate transactions. 3. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Compliance with Texas Securities Laws: This variation emphasizes the importance of adhering to Texas securities laws and regulations regarding stock transfers within Tarrant County. In conclusion, the Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a legally required notice on stock certificates issued by Tarrant-based companies. It aims to regulate the transferability of the stock within the scope of Tarrant, Texas, in accordance with intrastate exemption laws and local regulations.

A Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a legal notice or restriction that is often found on stock certificates issued by companies based in Tarrant, Texas. This statement or legend signifies that the stock being issued is not registered with the Securities and Exchange Commission (SEC) and can only be traded or transferred within the boundaries of the state, in accordance with intrastate exemption laws. The purpose of this statement is to inform shareholders and potential investors about the limitations on the transferability of the stock. It ensures that the stock is only sold or transferred to individuals or entities who are residents or businesses within Tarrant, Texas, as defined by local law. The Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a legal safeguard for the company issuing the stock, as it helps prevent unauthorized trading or transferring of the stock outside the jurisdiction of Tarrant, Texas. Additionally, it helps comply with relevant regulations and laws governing the intrastate sale of securities. It's worth noting that there could be variations of this statement or legend, depending on the specific requirements imposed by Tarrant, Texas, or other relevant governing bodies. Some common variations or types of Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption may include: 1. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Restricted to Tarrant Residents Only: This variation explicitly restricts the transfer of the stock to only residents of Tarrant County, Texas. 2. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Intrastate Sale Only: This variation highlights that the stock can be traded or transferred within the state of Texas but is limited to intrastate transactions. 3. Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Compliance with Texas Securities Laws: This variation emphasizes the importance of adhering to Texas securities laws and regulations regarding stock transfers within Tarrant County. In conclusion, the Tarrant Texas Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption is a legally required notice on stock certificates issued by Tarrant-based companies. It aims to regulate the transferability of the stock within the scope of Tarrant, Texas, in accordance with intrastate exemption laws and local regulations.