The Hillsborough Florida legend on a stock certificate giving notice of restriction on transfer due to a stock redemption agreement is a financial document that signifies certain limitations on the transferability of shares held by stockholders. This legend is typically included on stock certificates issued by corporations located in Hillsborough County, Florida, and is often mandated by state or local laws. The purpose of the legend is to provide notice to potential buyers or transferees that the stock being offered for sale is subject to certain restrictions imposed by a stock redemption agreement. This agreement requires the current stockholder to first offer the shares for purchase to the corporation itself before considering offers from other stockholders or external parties. The restrictions imposed by this legend serve several purposes. Firstly, they allow the corporation to maintain control over its ownership structure and avoid unwelcome external shareholders. By giving the corporation the first right of refusal, it ensures that the shares can be bought back by the company itself, thus enabling it to maintain stability and control over its ownership. In addition to the initial offer to the corporation, this legend may require the stockholder to make a subsequent offer to other existing shareholders of the company. This provision ensures that other stockholders have an opportunity to purchase the shares before they are offered to external parties. This step further strengthens the control and continuity of the corporation's ownership structure. Different types of Hillsborough Florida legends on stock certificates might include variations in the wording and formatting of the restriction notice, while still conveying the same essential meaning. The specific language used can vary depending on the requirements of local laws and the preferences of the issuing corporation. However, the underlying purpose remains the same — to make potential buyers aware of the restrictions on transferring the shares and the need to comply with the stock redemption agreement. In conclusion, the Hillsborough Florida legend on a stock certificate giving notice of restriction on transfer due to a stock redemption agreement serves as a means of preserving the ownership structure of a corporation. By mandating a first offer to the corporation and then offering shares to existing stockholders, this legend helps maintain control and stability within the company.
Hillsborough Florida 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
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FAQ
If you own stock in a fully reporting non-shell company, you may be eligible to sell your stock if you have beneficially owned it for more than 6 months and less than one year. In order to do this, you will need to contact your broker/dealer and they will assist you in removing the restriction.
Legend Removal Period means, with respect to any securities, any period during which (a) a registration statement (including the Registration Statement) covering the resale of such securities is effective under the Securities Act, (b) such securities have been or are being sold pursuant to Rule 144 or Rule 144A and the
Restrictive legends are stamped or printed on the certificate or instrument, face or reverse, of restricted securities and usually begin with These securities are not registered . . . . Restricted securities that are not represented by a certificate (generally referred to as book entry) will have a notation of
You may not sell, assign, pledge, encumber, or otherwise transfer any interest in the Restricted Shares until the dates set forth in the Vesting Schedule set forth below, at which point the Restricted Shares will be referred to as Vested. A Restricted Share shall not be subject to execution, attachment or similar
Restricted stock refers to unregistered shares of ownership in a corporation that are issued to corporate affiliates, such as executives and directors. Restricted stock is non-transferable and must be traded in compliance with special Securities and Exchange Commission (SEC) regulations.
If you receive stock from a company affiliate -- an executive officer, director or large investor -- the shares are restricted control securities. Under SEC Rule 144, you can lift stock restrictions by holding the shares for a set amount of time.
If you want to remove the restrictive legend, you should contact the company that issued the securitiesor the transfer agent for the company's securitiesto ask about the procedures for removing a legend. If you have a broker, you may want to ask your broker to help you.
When securities are restricted, a restrictive legend is usually stamped on the back of the stock certificate, prohibiting its sale in the public marketplace unless they are registered with the SEC or are exempt from the registration.
A legend is a statement on a stock certificate noting restrictions on the transfer of the stock. A stock legend is typically put in place due to the requirements established by the Securities and Exchange Commission (SEC) for unregistered securities.
