Irrevocable Stock Power
About this form
An irrevocable stock power is a legal document used to transfer ownership of shares from one party to another without the option to reverse the transaction. This form differs from other stock transfer documents because it cannot be revoked once executed. It is commonly used in corporate settings for permanent transfers of stock ownership, ensuring that the transferee has clear rights to the shares.
Form components explained
- Seller's details: Names of the current owner of the stock.
- Transferee's details: Name of the person or entity receiving the shares.
- Number of shares: The quantity of shares being transferred.
- Type of stock: The classification of stock (e.g., common or preferred).
- Corporate details: Information about the company issuing the shares, including its state of incorporation.
- Signature and title: The signature of the seller along with their title, confirming the transfer.
Common use cases
This form is appropriate when an individual or entity wishes to permanently transfer shares to another party. You might use it in situations such as selling stock to another investor, granting stock to a family member as a gift, or transferring shares as part of an estate or business planning strategy. It ensures the transfer is legally binding and recognized by the corporation involved.
Who this form is for
- Shareholders looking to transfer stock ownership permanently.
- Business owners executing stock transfers as part of corporate restructuring.
- Individuals involved in estate planning who wish to gift stock to heirs.
- Investors conducting significant stock purchases from one another.
Completing this form step by step
- Identify the parties involved: the seller (current stock owner) and the transferee (new stock owner).
- Specify the number of shares and the type of stock being transferred.
- Enter the name of the corporation along with its state of incorporation.
- Provide the certificate number of the shares being transferred.
- Date the document and ensure the seller signs with their title.
Notarization guidance
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Avoid these common issues
- Not specifying the correct number of shares.
- Failing to include the type of stock being transferred.
- Leaving out the corporation's details.
- Not signing the document or omitting the seller's title.
Why use this form online
- Convenient access to legally drafted forms 24/7.
- Editability allows you to customize the form to your specific needs.
- Reliability ensured by documents prepared by licensed attorneys.
What to keep in mind
- An irrevocable stock power allows for permanent transfer of stock ownership.
- It is essential to fill out all components accurately to avoid legal complications.
- Users should check local laws to ensure compliance with state requirements.
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FAQ
The owner must endorse the stock by signing it in the presence of a guarantor, which can be their bank or broker. There may also be a form on the back of the certificate, which relates to the transferring of ownership. After the certificate is complete, it will be rendered non-negotiable and becomes transferable.
A stock certificate represents a shareholder's ownership interest in a corporation. Most states do not require a corporation to issue a paper stock certificate -- that is, the corporation's board can authorize issuance of shares without the need for certificates.
To provide stock for the plans, the corporation was going to repurchase shares from the founders.That separate document, which is associated with the applicable share certificate, is called a Stock Assignment Separate from Certificate. That audit trail is set forth in a corporation's Stock Transfer Ledger.
Old stock certificates shouldn't be simply thrown away. They can still have value if they represent an existing or merged company, or if they are valued as collectibles. A little bit of research can help you determine the worth, if any, of your old paper stock certificate.
Corporate stock refers to a type of ownership in a legal business entity, such as an C-corporation. Corporations typically issue stock to raise money from investors to fund capital expenditures or future growth. Typically corporate stock is broken up into common or preferred stock.
Quite often, a shareholder (who may also be a founder) wishes to gift his or her shares to another shareholder (who may also be a co-founder), or to a family member of his. The good news is that there is no Capital Gains Tax on gifts of assets (including shares) you give to your spouse or civil partner.
A stock certificate is a physical piece of paper that represents a shareholder's ownership in a company. Stock certificates include information such as the number of shares owned, the date of purchase, an identification number, usually a corporate seal, and signatures.
To initiate a transfer you need to sign a demat instruction slip (similar to a cheque leaf), which the DP will give you, and submit it back to the DP with complete details such as the date of transfer, scrip name, quantity, international security identification number (ISIN), recipient's DP name and ID.
Stock Certificates Are No Longer Necessary Today, most of the world's exchanges have either done away with or are phasing out paper certificates. Stock ownership is much easier to prove now thanks to electronic records and electronic communication networks (ECN).
