Registering stock in California
We are selling 40% of the stock of our closely held California corporation. One of the investors wants to purchase the stock in his corporate retirement plan in which he is the only participant. To be qualified what needs to be done to have it registered or anything more that needs to be done?
Re: Registering stock in California
The investor who wants to put his purchased stock into his retirement plan is the tip of a rather large iceberg. You need to have attorney assistance and review throughout the process of issuing stock to outsiders. This would include determining the proper exemption or registration process, preparing disclosure documents, and other steps necessary to keep your corporation and its officers, promoters and directors out of hot water.
It is sometimes said of securities issues that they are of three kinds: registered, exempt and illegal. In order to avoid falling into that third category, you'll need professional assistance in making sure you're registered or, if not, why you are exempt from registration and what you must do or not do to become and remain qualified for the relied-upon exemption.
Re: Registering stock in California
The investor who wants to put his purchased stock into his retirement plan is the tip of a rather large iceberg. You need to have attorney assistance and review throughout the process of issuing stock to outsiders. This would include determining the proper exemption or registration process, preparing disclosure documents, and other steps necessary to keep your corporation and its officers, promoters and directors out of hot water.
It is sometimes said of securities issues that they are of three kinds: registered, exempt and illegal. In order to avoid falling into that third category, you'll need professional assistance in making sure you're registered or, if not, why you are exempt from registration and what you must do or not do to become and remain qualified for the relied-upon exemption.
