Alabama Administrative Code
Title 830 - ALABAMA SECURITIES COMMISSION
Chapter 830-X-4 - REGISTRATION OF SECURITIES
Section 830-X-4-.12 - Escrow Of Securities
Current through Register Vol. 42, No. 5, February 29, 2024
(1) In circumstances where there is a substantial disparity between the proposed public offering price of securities and the consideration paid by promoters or insiders for such securities or if securities have been issued or are intended to be issued for any patent right, copyright, trademark, process, formula, goodwill, promotion fees or expenses, going concern value of other intangible assets, the Commission may require as a condition to the registration of securities an escrow of all or part of the securities issued to promoters or insiders.
(2) The escrow agreement shall be in a form suitable to the Commission and shall provide that the owners of such securities shall not be entitled to sell or transfer the securities or withdraw the securities from escrow until:
(3) In the event of a voluntary or involuntary dissolution, the owners of such escrowed securities shall not participate in the assets until the owners of all other securities have been paid in full.
Author:
Statutory Authority: Code of Ala. 1975, § 8-6-23.