Our Services
Restrictive Removals
When a security is restrictive then it will have a legend stamped on the certificate to show it is so. The primary reason for a restrictive legend is to stop holders of the securities from transferring their shares in volition of any securities rules and regulations or contractual agreements.
Securities bearing a legend cannot be transferred until; they have been sold in accordance with the appropriate contractual or regulatory restrictions, or are no longer subject to the same. Even if there is no legend on the certificate it does not necessarily mean that the stock is unrestricted.
6-12 Months Holding Period
You may sell stock in a fully reporting non-shell company if you have held the securities for more than six months but less than a year. The best way to do this is to contact your dealer or broker as they can assist in the process of getting the legend removed.
12 Months + Holding Period
If you have held securities in a fully reporting non-shell entity for more than a year and are a non-affiliate you can remove any restrictive legend by contact My Secure Transfer direct. For non-reporting company restriction removals, you may need to obtain a legal opinion, that is assuming there is an exemption available under Rule 144.
To remove a 144 restriction on securities that have been held over one year, you need to send us the following:
The original certificate with the Restriction Removal Instructions.
If necessary, a legal opinion.
A 144 Seller’s Rep Letter.
The appropriate transfer fees plus the legend removal fees.
The appropriate transfer letter instruction fees, plus applicable return shipment information.
Registration Statements
If a public company wants to remove restrictive legends to enable their shareholders to sell their securities may do so by filing registration statements with the SEC. These are sometimes known as selling registration statements and there is one proviso; that any unsold stock be issued back into the shareholders name with a restriction.
If a registration statement has been correctly filed with the SEC for the securities and is still “effective” , please send us the following information to free up the shares once they have been sold.
The securities certificate together with the Transfer Instruction and a sufficient Medallion Signature Guarantee.
Confirmation of sales letter, duly signed, authenticating that the shares have been sold in agreement to the prospectus delivery requirements.
The registration certificate listing the securities.
All appropriate transfer fees, plus the legend removal fee.
Any fees as directed by the transfer instruction letter and return shipment information.
Lost Stock Certificates
Trying to replace lost securities certificates can be a tricky and complicated operation. My Secure Transfer advise all their clients to thoroughly check their own documentation and also to contact their brokers to try and find lost certificates before filing for any replacements.
Lost Certificate Replacement Process
Step 1 – To begin the replacement process, My Secure Transfer require our shareholders to send the Lost Securities Form Letter with an explanation of how and when they were lost. You can send this by; email or fax. Once we have received this instruction we can place a stop on the certificates.
It should be noted that shareholders that instruct My Secure Transfer to initiate the replacement process and then find the missing documentation before we have replaced it will be subject to a $50 recovery-filing fee to reactivate the securities and take all stops off.
Step 2 – Upon receipt of the Lost Securities Letter, My Secure Transfer will send directions and two lost securities insurance bond affidavits. Both of these need signing, notarized and returned back to us with all due fees payable by cashier’s check or wire, then we will release a replacement securities certificate.
In normal situations this will be done between 1 and 3 days after receipt of the affidavits and cleared funds. If the value of the securities exceed $50,000 then the registered holder will have to provide financials of at least twice the value of the shares. A co-signer can also do this.
Fees – It is certainly recommended to check the current market value of the securities and the liquidity of the stock before starting the process of replacing any lost certificates. The associated fees include an open-ended surety bond, based upon a % of the true market value.
Finding A Lost Certificate
As already covered, My Secure Transfer advise their shareholders to thoroughly search for any lost certificates before filing for replacement ones.
When we receive instruction to start a replacement procedure then the next day it is found, we will charge $50 as a filing fee to reactivate the securities. In order to recoup lost certificates with us, our shareholders will be required to send the appropriate fees and a signed letter stating that the certificate was found. Once the letter is received, My Secure Transfer will reactivate the certificate and remove the stop which was placed.