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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B2. REGISTRATION OF SECURITIES OFFERINGS |
Section 26-B232. CAPITAL STOCK BEING REGISTERED
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232.1If capital stock is being registered, the issuer shall state the title of the class and furnish the following information:
(a)Dividend rights;
(b)Voting rights;
(c)Liquidation rights;
(d)Pre-emptive rights;
(e)Conversion rights;
(f)Redemption provisions;
(g)Sinking fund provisions; and
(h)Liability to further calls or to assessment by the issuer.
232.2If the rights of holders of a stock may be modified otherwise than by a vote of a majority or more of the shares outstanding, voting as a class, the issuer shall state and explain briefly.
232.3The issuer shall outline briefly any restriction on the repurchase or redemption of shares by the issuer while there is any arrearage in the payment of dividends or sinking fund installments. If there is no such restriction, so state.
232.4The issuer shall provide a brief summary of the pertinent provisions from an investment standpoint is required. A complete legal description of the provisions referred to is not required and should not be given. The issuer need not set forth the provisions of the governing instruments verbatim. Only a succinct resume is required.
232.5If the rights evidenced by the securities being registered are materially limited or qualified by the rights of any other class of securities, the issuer shall include the information regarding such other securities as will enable investors to understand the rights evidenced by securities being registered. Information need not be given, however, as to any class of securities, all of which will be redeemed and retired, provided appropriate steps to assure the redemption and retirement will be taken before or upon delivery by the issuer of the securities being registered.