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Exempt transactions are securities transactions that are exempt from the registration requirements of the 1933 Securities Act. Four typical examples of transaction exemptions in the United States include 1) Regulation A Offerings, 2) Regulation D Offerings, 3) Intrastate Offerings, and 4) Rule 144 Offerings.
Isolated transaction exemption (203.189): Pennsylvania companies may sell securities to no more than two Pennsylvania investors in a 12-month period without registration or filing with the department.
An exempt transaction exists as long as an offering of securities is limited to no more than 10 retail investors in a 12 month period, no commission is collected from retail investors, and those retail investors are purchasing the security for investment purposes.
--An action taken pursuant to subsection (b) to approve a transaction under Chapter 3 (relating to entity transactions) shall not become effective until after at least ten days' notice of the action has been given to each shareholder entitled to vote thereon who has not consented thereto.
(b) Action by consent. --Unless otherwise restricted in the bylaws, any action required or permitted to be approved at a meeting of the directors may be approved without a meeting by a consent or consents to the action in record form.
Know SEC registration and exemption rules An issuance of securities to yourself, your immediate family members and a few other investors will usually be totally exempt form both federal and state securities laws. In this case, the exemption generally is ?self-executing??that is, the exemption is automatic.
Under it, certain securities listed on stock exchanges, such as NASDAQ or NYSE, are exempt from state blue sky laws. Securities exempt by Rule 506 under federal law are also exempt under blue sky laws.