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Transfering Stock (BUSINESS & FINANCIAL & Corporate LAW)

Thu, 10 Sep 2009 01:24:00 GMT

My question involves business law in the state of: CA
I am the sole shareholder in a corp, abc, that owns stock in another corp, xyz..I want to close abc corp but I need to transfer xyz stock to my wife and I. The terminology is a little confusing to me. I think it is pretty standard. It reads...
For value received,__hereby sell, assign, and transfer unto_________, ___________Shares represented by the within certificate, and do hereby irrevocably constitute and appoint___________Attorney to transfer the said shares on the books of the within named Corporation with full power of substitution in the premises.
Dated_________ ___
in presence of
_____________________________
__________________________

I understand it until I get to the ...irrevocable constitute....I would appreciate some help with understanding the rest....Thanks

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  • Fri, 18 Sep 2009 00:21:00 GMT(1)
  • Maybe I wasn't specific enough....I am the sole owner of abc corp. Abc corp. owns shares in xyz corp. I no longer have a need for abc corp. and wish to desolve it. However, before doing so, I need to transfer the shares in xyz corp. out of abc corp. to my wife and I. I have never transferred shares before and am curious about the terminology....Thanks
  • Fri, 11 Sep 2009 19:45:00 GMT(2)
  • In that context "constitute" means "appoint" or "nominate".
  • Leave a Comment Now.

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