Stock certificate restrictive legend

Declaration for Removal of Legend (Rule 904 Resale)by Practical Law Corporate & Securities Related Content Maintained • USA (National/Federal)A declaration for the removal of a restrictive legend from a certificate representing shares of common stock to facilitate a resale exempt from registration under Rule 904 of Regulation S under the Securities Act of 1933. Share certificate restrictive legend for California professional corporation RESTRICTIONS ON OWNERSHIP AND TRANSFER The Shares of this professional corporation may be issued only to the issuing corporation or to a licensed person practicing in the profession of the issuing corporation. Accredited Investor Legend: A legend regarding resale restrictions shall be conspicuously set forth on the front of any certificate that represents a security issued or resold in accordance with this rule. Any certificate legend shall no longer be required on the termination of any resale restrictions

Most certificates representing restricted stock have a notice, or legend, stamped on them indicating the stock is restricted. Not all certificates have this stamp, so it is a good idea to check with the issuer before you attempt to sell the stock. If you have such stock, there is a process to go through before you can sell the shares. 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 restrictions in the stock register or record and receipt given to the stockholder. Sometimes, a given corporation’s legends on share certificates take up too much space to fit on the front. In that case, legends can be placed on the back, and there should be a legend along the line of the following on the front: TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED. SEE LEGEND ON REVERSE SIDE. Restricted stock certificates customarily bear a legend identifying them as restricted. The main purpose of a restrictive legend is to prevent shareholders from transferring ownership in violation of securities laws or contractual agreements.

They typically bear a “restrictive” legend clearly stating that you may not resell them in the public marketplace unless the sale is exempt from the SEC’s registration requirements. Rule 144 under the Securities Act of 1933 provides the most commonly used exemption for holders to sell restricted securities.

Who should I contact regarding my stock certificate(s)?. All stock transactions There is a new, streamlined procedure for removing restrictive legends. If you are   The certificate will not be sent to the transfer agent for legend removal until after a sale has been executed unless the shares are restricted under Rule 144(b) or  24 Aug 2015 The Canadian resale rules to remove a restrictive legend and sell securities hold period on stock issued by non-reporting issuers and a restricted Shareholders may remove the legend from the securities certificate once  5 Jan 2009 certificates or transfers in large blocks of securities and the firm does not of the opinion of counsel, restricted stock legend, offering materials  Restricted Shares. When you buy private shares, you'll receive stock certificates with a restrictive legend stamped on the back of each. The legend announces that 

Who should I contact regarding my stock certificate(s)?. All stock transactions There is a new, streamlined procedure for removing restrictive legends. If you are  

They typically bear a “restrictive” legend clearly stating that you may not resell them in the public marketplace unless the sale is exempt from the SEC’s registration requirements. Rule 144 under the Securities Act of 1933 provides the most commonly used exemption for holders to sell restricted securities. A restricted stock certificate legend is placed on the stock certificates issued in reliance upon this or other exemptions. The stock restriction gives notice to all prospective purchasers that future sales of the shares represented by the certificates will be restricted according to the terms of the restriction.

Legend on Stock Certificates. If one or more certificates for all or any portion of the Restricted Shares are issued in the Participant’s name under this Agreement before such Restricted Shares become vested, the certificates shall bear the following legend, or any alternate legend that counsel to the Company believes is necessary or desirable, to facilitate compliance with applicable securities or other laws:

Sometimes, a given corporation’s legends on share certificates take up too much space to fit on the front. In that case, legends can be placed on the back, and there should be a legend along the line of the following on the front: TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS RESTRICTED. SEE LEGEND ON REVERSE SIDE.

Rule 144 allows holders of restricted or control resold under certain conditions and usually bear a legend to that effect. with their certificate and medallion- guaranteed stock powers.

What are the fees associated with transferring stock certificates? Restricted stock is issued with a 'restricted legend' on the stock certificate. Shareholders with   Securities Act Restrictive Legends and Rule 144 Salesby Practical Law Corporate & Securities Related Content Maintained • USA (National/Federal)A  13 Nov 2017 Your stock certificates contain restrictive legends that prohibit the transfer of the shares of stock represented by such certificates except in  With DRS, Corporate Stock Transfer holds your shares electronically, hence making sales and Your legend on the back of your certificate has a specific date on it. What is the streamlined procedure for removing restrictive legends?

24 Aug 2015 The Canadian resale rules to remove a restrictive legend and sell securities hold period on stock issued by non-reporting issuers and a restricted Shareholders may remove the legend from the securities certificate once  5 Jan 2009 certificates or transfers in large blocks of securities and the firm does not of the opinion of counsel, restricted stock legend, offering materials  Restricted Shares. When you buy private shares, you'll receive stock certificates with a restrictive legend stamped on the back of each. The legend announces that  1 Jan 2017 When and how are legends removed from restricted global notes? resales of the notes and underlying common stock and to maintain the shelf's effectiveness The form of issuer free transferability certificate to the trustee is  27 Jan 2004 Everyone has heard of Rule 144 and Restricted Securities, but few Now that the stock markets are heating up in Israel and the United You look at the certificate and find a legend stating that these are restricted shares. They typically bear a “restrictive” legend clearly stating that you may not resell them in the public marketplace unless the sale is exempt from the SEC’s registration requirements. Rule 144 under the Securities Act of 1933 provides the most commonly used exemption for holders to sell restricted securities.