Mississippi Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares A Mississippi Legend on a Stock Certificate refers to a notable and distinctive feature that is present on the stock certificates of certain companies located in the state of Mississippi. This legend is specifically mandated by state laws and serves as an additional layer of protection for the issuer and the shareholders. The primary purpose of the Mississippi Legend is to alert potential buyers and investors that there are specific restrictions in place regarding the transfer of shares represented by the stock certificates. These restrictions are usually outlined in a separate document, commonly known as a Restrictive Stock Transfer Agreement or Restrictive Legends Agreement. The Mississippi Legend typically contains specific language or wording that highlights the specific restrictions and provides a clear indication that the shares represented by the stock certificate cannot be transferred or sold without complying with the requirements stated in the separate document. It acts as a warning to potential buyers that the shares may be subject to certain limitations on transferability. The content of the Mississippi Legend may vary based on the nature of the restrictions and the particular terms outlined in the separate document. Some common types of Mississippi Legends on Stock Certificates with reference to separate document restricting transfer of shares include: 1. "This certificate is subject to the Mississippi Legend and may not be sold or transferred without compliance with the terms of the Restrictive Stock Transfer Agreement." 2. "The shares represented by this certificate are subject to restrictions on transferability as specified in the Restrictive Legends Agreement. Any transfer or sale must follow the guidelines set forth in the said agreement." 3. "Notice: This stock certificate is subject to certain transfer restrictions in accordance with the Restrictive Stock Transfer Agreement. Prior approval from the company is required for any transfer or sale of these shares." It's important for shareholders, potential investors, and anyone deals with stock certificates from Mississippi-based companies to carefully review the Mississippi Legend and the referenced separate document before attempting to transfer or sell shares. Failing to adhere to the specified restrictions could result in legal consequences and potential invalidation of the transfer. In conclusion, the Mississippi Legend on a Stock Certificate with Reference to Separate Document Restricting Transfer of Shares serves as a clear reminder of the limitations placed on the transferability of shares. It acts as a protective measure for the issuer while providing transparency to potential buyers and investors, ensuring that all parties involved are aware of the restrictions governing share transfers.
Mississippi Legend on Stock Certificate with Reference to Separate Document Restricting Transfer of Shares
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How to fill out Mississippi Legend On Stock Certificate With Reference To Separate Document Restricting Transfer Of Shares?
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FAQ
Only a transfer agent can remove a restrictive legend. But the transfer agent won't remove the legend unless you've obtained the consent of the issuer?usually in the form of an opinion letter from the issuer's counsel?that the restrictive legend can be removed.
A restricted security must bear a legend giving notice of the restrictions. That legend which must be removed after the restrictions are lifted. A security with a legend cannot be transferred or sold and must be removed before any transaction.
The purpose of the restrictive legend or notation is to protect the issuing company from loosing its private placement exemption for the initial sale of the securities and to notify the investor that the restricted securities cannot be resold into the public securities market without satisfying certain requirements.
In order to have the legend on a stock certificate removed, investors should contact the company's shareholder relations department to find out the details of the removal process. Following that, the company will send a confirmation authorizing its transfer agent to remove the legend.
A stock transfer restriction is essentially a contract between the shareholders of the corporation or members of the LLC. Therefore, the owners have the ability to be extremely creative in crafting a stock transfer restriction that meets their specific wants and needs.
The process of removing the restrictive legend from a stock certificate is done only to facilitate a public resale, and in no way alleviates an investor from complying with all aspects of Rule 144 at all times.
The purpose of the restrictive legend or notation is to protect the issuing company from loosing its private placement exemption for the initial sale of the securities and to notify the investor that the restricted securities cannot be resold into the public securities market without satisfying certain requirements.
Once vested, restricted shares are assigned a fair market value. Restricted shares may also be restricted by a double-trigger provision. That means that an employee's shares become unrestricted if the company is acquired by another and the employee is fired in the restructuring that follows.
