Suffolk New York Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Suffolk
• Control #: US-1058BG
• 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). This Legend restricts the transfer of stock in accordance with the Articles of Incorporation or the Corporation's Bylaws or a Shareholder's Buy Sell Agreement. The Suffolk New York Legend on Stock Certificate refers to a specific clause or statement that is commonly found on stock certificates issued in Suffolk County, New York. This legend serves to highlight the existence and importance of a separate document that specifically restricts or regulates the transfer of shares associated with the stock certificate. The Suffolk New York Legend on Stock Certificate signifies that there is an accompanying document, typically referred to as the "Separate Document Restricting Transfer of Shares," which outlines specific terms and conditions for transferring shares. This additional document may have varying types or categories depending on the specific restrictions imposed on the transfer of shares. Some possible types of Suffolk New York Legends on Stock Certificates with Reference to Separate Document Restricting Transfer of Shares include: 1. Restricted Stock Legend: This type of legend indicates that the shares represented by the stock certificate are subject to certain restrictions on transferability. Common restrictions could include limitations on selling the shares to non-accredited investors or requiring approval from the company's board of directors before transferring the shares. 2. Lock-up Agreement Legend: This legend signifies that the shares mentioned in the stock certificate are subject to a lock-up period during which the shareholder is prohibited from selling or transferring the shares. Lock-up periods are often imposed during initial public offerings (IPOs) or significant corporate transactions to prevent sudden or excessive selling of shares. 3. Right of First Refusal Legend: This type of legend indicates that the shareholder must offer the shares first to the company or other specified parties before selling or transferring them to third parties. The right of first refusal allows the company or designated parties to have the opportunity to purchase the shares at the same price and terms offered by a third party. 4. Securities Act Compliance Legend: This legend indicates that the shares have not been registered under the securities laws of the United States or any specific state and are subject to certain restrictions on resale or transferability. This type of legend is often required to comply with securities regulations and inform potential buyers of the limitations associated with the shares. Overall, the Suffolk New York Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares serves as a vital reminder that the transfer of shares represented by the stock certificate is governed by specific terms and conditions outlined in a separate document. It helps protect the interests of the company and shareholders by ensuring compliance with applicable laws and maintaining control over the transfer of shares.

The Suffolk New York Legend on Stock Certificate refers to a specific clause or statement that is commonly found on stock certificates issued in Suffolk County, New York. This legend serves to highlight the existence and importance of a separate document that specifically restricts or regulates the transfer of shares associated with the stock certificate. The Suffolk New York Legend on Stock Certificate signifies that there is an accompanying document, typically referred to as the "Separate Document Restricting Transfer of Shares," which outlines specific terms and conditions for transferring shares. This additional document may have varying types or categories depending on the specific restrictions imposed on the transfer of shares. Some possible types of Suffolk New York Legends on Stock Certificates with Reference to Separate Document Restricting Transfer of Shares include: 1. Restricted Stock Legend: This type of legend indicates that the shares represented by the stock certificate are subject to certain restrictions on transferability. Common restrictions could include limitations on selling the shares to non-accredited investors or requiring approval from the company's board of directors before transferring the shares. 2. Lock-up Agreement Legend: This legend signifies that the shares mentioned in the stock certificate are subject to a lock-up period during which the shareholder is prohibited from selling or transferring the shares. Lock-up periods are often imposed during initial public offerings (IPOs) or significant corporate transactions to prevent sudden or excessive selling of shares. 3. Right of First Refusal Legend: This type of legend indicates that the shareholder must offer the shares first to the company or other specified parties before selling or transferring them to third parties. The right of first refusal allows the company or designated parties to have the opportunity to purchase the shares at the same price and terms offered by a third party. 4. Securities Act Compliance Legend: This legend indicates that the shares have not been registered under the securities laws of the United States or any specific state and are subject to certain restrictions on resale or transferability. This type of legend is often required to comply with securities regulations and inform potential buyers of the limitations associated with the shares. Overall, the Suffolk New York Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares serves as a vital reminder that the transfer of shares represented by the stock certificate is governed by specific terms and conditions outlined in a separate document. It helps protect the interests of the company and shareholders by ensuring compliance with applicable laws and maintaining control over the transfer of shares.