Fulton Georgia Legend on Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Fulton
• Control #: US-1059BG
• 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. A stock redemption agreement is a contract between a corporation and the stockholder, where the corporation repurchases the stock from the owner The Fulton Georgia Legend on a stock certificate refers to a distinctive marking indicating a restriction on the transfer of the stock due to a stock redemption agreement. This particular agreement mandates that before selling or transferring the stock, the current stockholder must first make an offer to the corporation and then extend an offer to other stockholders. This kind of restriction aims to regulate and control the transfer of stocks within a corporation. It ensures that the corporation and the existing stockholders have the opportunity to consider and potentially exercise their right to purchase the stock for themselves, before it is offered to outside parties. The Fulton Georgia Legend on a Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders can assume various forms depending on the specific terms and conditions of the agreement. Some possible variations include: 1. Right of First Refusal (ROAR): Under this variant of the restriction, the stockholder is obliged to offer their shares to the corporation first, at a price determined by a predetermined formula or market value. Only if the corporation declines the offer can the stockholder proceed to offer the stock to other existing stockholders or outside parties. 2. Preemptive Rights: This type of restriction grants each existing stockholder the right to purchase a proportionate share of any newly issued stocks or the stocks being transferred by another stockholder, usually at the same price and terms offered to an outside party. If the existing stockholders choose not to exercise their preemptive rights, the stock can then be offered to the corporation or outside parties. 3. Buy-Sell Agreement: This variation typically involves an agreement between stockholders to restrict the transfer of shares and establish a mechanism for the redemption or purchase of shares among the stockholders themselves. The agreement outlines the process, price, and conditions of the stock transfer or redemption. In conclusion, the Fulton Georgia Legend on a Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders serves as a prominent indicator of a restriction on stock transfer. It ensures that the corporation and existing stockholders have the opportunity to consider acquiring the stock before it is available to outside parties. Variations of this restriction may include Right of First Refusal, Preemptive Rights, or a Buy-Sell Agreement.

The Fulton Georgia Legend on a stock certificate refers to a distinctive marking indicating a restriction on the transfer of the stock due to a stock redemption agreement. This particular agreement mandates that before selling or transferring the stock, the current stockholder must first make an offer to the corporation and then extend an offer to other stockholders. This kind of restriction aims to regulate and control the transfer of stocks within a corporation. It ensures that the corporation and the existing stockholders have the opportunity to consider and potentially exercise their right to purchase the stock for themselves, before it is offered to outside parties. The Fulton Georgia Legend on a Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders can assume various forms depending on the specific terms and conditions of the agreement. Some possible variations include: 1. Right of First Refusal (ROAR): Under this variant of the restriction, the stockholder is obliged to offer their shares to the corporation first, at a price determined by a predetermined formula or market value. Only if the corporation declines the offer can the stockholder proceed to offer the stock to other existing stockholders or outside parties. 2. Preemptive Rights: This type of restriction grants each existing stockholder the right to purchase a proportionate share of any newly issued stocks or the stocks being transferred by another stockholder, usually at the same price and terms offered to an outside party. If the existing stockholders choose not to exercise their preemptive rights, the stock can then be offered to the corporation or outside parties. 3. Buy-Sell Agreement: This variation typically involves an agreement between stockholders to restrict the transfer of shares and establish a mechanism for the redemption or purchase of shares among the stockholders themselves. The agreement outlines the process, price, and conditions of the stock transfer or redemption. In conclusion, the Fulton Georgia Legend on a Stock Certificate Giving Notice of Restriction on Transfer due to Stock Redemption Agreement Requiring First an Offer to the Corporation and then an Offer to other Stockholders serves as a prominent indicator of a restriction on stock transfer. It ensures that the corporation and existing stockholders have the opportunity to consider acquiring the stock before it is available to outside parties. Variations of this restriction may include Right of First Refusal, Preemptive Rights, or a Buy-Sell Agreement.