Resales Under Rule 144

This Note discusses the Section 4(a)(1) (formerly Section 4(1)) exemption for resales of securities from the registration requirements of the Securities Act and the safe harbor provided by Rule 144 of the Securities Act. In particular, this Note explains who is eligible to rely on the Section 4(a)(1) exemption and the Rule 144 safe harbor and distinguishes the treatment of control securities and restricted securities. In addition, this Note describes the conditions that must be satisfied to rely on Rule 144, including any holding period and volume limitations applicable. In addition, this Note discusses restrictive legends and how to remove them from securities.

Practical Law Corporate & Securities


 

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