Restrictive Legend Removal

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Category: Restrictive Legend Removal

Published on Tuesday, 26 April 2011 18:28

Written by Matt Troster

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Olde Monmouth has been in the stock transfer business for over 20 years and as part of that service to the financial industry, is fully capable and qualified to perform Restrictive Legend Removal. Only a transfer agent can remove a restrictive legend. Olde Monmouth would require an opinion letter from the issuer's counsel or from his or her own lawyer plus 144 papers completed by a broker—stating that the restricted legend can be removed. Unless this happens, the Olde Monmouth Stock Transfer Co. , Inc.  doesn't have the authority to remove the legend and you cannot execute the trade in the marketplace.  If a dispute arises about whether a restricted legend can be removed, the SEC will not intervene. The removal of a legend is a matter solely in the discretion of the issuer of the securities. State law, not federal law, covers disputes about the removal of legends. Thus, the SEC will not take action in any decision or dispute about removing a restrictive legend. Since removing the legend can be a complicated process, if you're considering buying or selling a restricted security, it would be wise for you to consult an attorney who specializes in securities law.