Legal Specifications for Stock Certificate Documents
Stock certificates are issued by corporations to raise money to invest into the company. Any corporation can legally issue stock certificates as long as they abide by state and federal regulations.
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Basic Information
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A stock certificate must always list a corporation's full name and state of incorporation, name to whom the certificate is issued, the number of certificates issued as well as the class and series of the certificates issued. The shares must list the rights and provisions of the class of share issued, be signed by two authorized members of the board of directors and bear the corporation's official seal.
State Information
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States may require additional information to be placed on certificates, so it's important to confirm the particular state's requirements with a qualified attorney. For example, in California certain certificates may state that any attempt to sell or transfer the securities requires the prior written consent of the commissioner of corporations, except as permitted under the commissioner's rules.
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Considerations
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Aside from the bare bones of a certificate, a corporation may choose to add additional requirements or regulations. These may include restrictions on the transfer or sale of shares or information in concordance with an employee-restricted stock purchase.
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References
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