Wayne Michigan 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: Wayne
• 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 Wayne, Michigan statement or legend on a stock certificate is a notice of restriction on transfer, specifically indicating that the stock is not registered and is subject to intrastate exemption. This statement is typically found on stock certificates issued by companies in the state of Wayne, Michigan. The purpose of this statement or legend is to inform the certificate holder that the stock is subject to certain restrictions on its transferability. These restrictions may be imposed due to various legal or regulatory requirements, such as those related to intrastate securities offerings or exemptions from registration. There may be different types or variations of the Wayne, Michigan statement or legend on stock certificates, depending on the specific circumstances and applicable regulations. Some possible variations could include: 1. "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption": This is a common statement that indicates the stock is not registered with the Securities and Exchange Commission (SEC) and is exempt from federal registration under the intrastate offering exemption. 2. "Warning: Transfer Restrictions Apply — Stock Subject to State Exemption": This statement warns the certificate holder that there are restrictions on transferring the stock and emphasizes that the exemption is granted at the state level, adhering to Wayne, Michigan regulations. 3. "Restricted Stock — Unauthorized TransfeProhibitedte— - Intrastate Exemption": This type of statement emphasizes the restricted nature of the stock and explicitly prohibits unauthorized transfers. It also highlights that the exemption from registration applies to intrastate transactions only. 4. "Caution: non-registered stock — limitationtransfereefe— - state-exempt": This statement serves as a warning to the certificate holder about the non-registered status of the stock and the limitations on its transferability. It highlights that the exemption is granted under state law, applicable in Wayne, Michigan. In summary, the Wayne, Michigan statement or legend on a stock certificate serves as a notice of restriction on transfer, specifically indicating that the stock is not registered and subject to intrastate exemption. The exact wording and type of statement may vary, but the purpose remains the same, ensuring compliance with relevant laws and regulations in Wayne, Michigan.

The Wayne, Michigan statement or legend on a stock certificate is a notice of restriction on transfer, specifically indicating that the stock is not registered and is subject to intrastate exemption. This statement is typically found on stock certificates issued by companies in the state of Wayne, Michigan. The purpose of this statement or legend is to inform the certificate holder that the stock is subject to certain restrictions on its transferability. These restrictions may be imposed due to various legal or regulatory requirements, such as those related to intrastate securities offerings or exemptions from registration. There may be different types or variations of the Wayne, Michigan statement or legend on stock certificates, depending on the specific circumstances and applicable regulations. Some possible variations could include: 1. "Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption": This is a common statement that indicates the stock is not registered with the Securities and Exchange Commission (SEC) and is exempt from federal registration under the intrastate offering exemption. 2. "Warning: Transfer Restrictions Apply — Stock Subject to State Exemption": This statement warns the certificate holder that there are restrictions on transferring the stock and emphasizes that the exemption is granted at the state level, adhering to Wayne, Michigan regulations. 3. "Restricted Stock — Unauthorized TransfeProhibitedte— - Intrastate Exemption": This type of statement emphasizes the restricted nature of the stock and explicitly prohibits unauthorized transfers. It also highlights that the exemption from registration applies to intrastate transactions only. 4. "Caution: non-registered stock — limitationtransfereefe— - state-exempt": This statement serves as a warning to the certificate holder about the non-registered status of the stock and the limitations on its transferability. It highlights that the exemption is granted under state law, applicable in Wayne, Michigan. In summary, the Wayne, Michigan statement or legend on a stock certificate serves as a notice of restriction on transfer, specifically indicating that the stock is not registered and subject to intrastate exemption. The exact wording and type of statement may vary, but the purpose remains the same, ensuring compliance with relevant laws and regulations in Wayne, Michigan.