Print
The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
150
:
SECURITIES ACT
Subchapter
003
:
REGISTRATION OF SECURITIES AND NOTICE FILING OF FEDERAL COVERED SECURITIES
§
5304. Securities registration by qualification
(a) A security
may be registered by qualification under this section.
(b) A
registration statement under this section must contain the information or
records specified in section 5305 of this chapter, a consent to service of
process complying with section 5611 of this chapter, and, if required by rule
adopted under this chapter, the following information or records:
(1) with respect
to the issuer and any significant subsidiary, its name, address, and form of
organization; the state or foreign jurisdiction and date of its organization;
the general character and location of its business; a description of its
physical properties and equipment; and a statement of the general competitive
conditions in the industry or business in which it is or will be engaged;
(2) with respect
to each director and officer of the issuer, and other person having a similar
status or performing similar functions, the person's name, address, and
principal occupation for the previous five years; the amount of securities of
the issuer held by the person as of the 30th day before the filing of the
registration statement; the amount of the securities covered by the
registration statement to which the person has indicated an intention to subscribe;
and a description of any material interest of the person in any material
transaction with the issuer or a significant subsidiary effected within the
previous three years or proposed to be effected;
(3) with respect
to persons covered by subdivision (2) of this subsection, the aggregate sum of
the remuneration paid to those persons during the previous 12 months and
estimated to be paid during the next 12 months, directly or indirectly, by the
issuer, and all predecessors, parents, subsidiaries, and affiliates of the
issuer;
(4) with respect
to a person owning of record or owning beneficially, if known, 10 percent or
more of the outstanding shares of any class of equity security of the issuer,
the information specified in subdivision (2) of this subsection other than the
person's occupation;
(5) with respect
to a promoter, if the issuer was organized within the previous three years, the
information or records specified in subdivision (2) of this subsection, any
amount paid to the promoter within that period or intended to be paid to the
promoter, and the consideration for the payment;
(6) with respect
to a person on whose behalf any part of the offering is to be made in a
nonissuer distribution, the person's name and address; the amount of securities
of the issuer held by the person as of the date of the filing of the
registration statement; a description of any material interest of the person in
any material transaction with the issuer or any significant subsidiary effected
within the previous three years or proposed to be effected; and a statement of
the reasons for making the offering;
(7) the
capitalization and long-term debt, on both a current and pro forma basis, of
the issuer and any significant subsidiary, including a description of each
security outstanding or being registered or otherwise offered, and a statement
of the amount and kind of consideration, whether in the form of cash, physical
assets, services, patents, goodwill, or anything else of value, for which the
issuer or any subsidiary has issued its securities within the previous two
years or is obligated to issue its securities;
(8) the kind and
amount of securities to be offered; the proposed offering price or the method
by which it is to be computed; any variation at which a proportion of the
offering is to be made to a person or class of persons other than the
underwriters, with a specification of the person or class; the basis on which
the offering is to be made if otherwise than for cash; the estimated aggregate
underwriting and selling discounts or commissions and finders' fees, including
separately cash, securities, contracts, or anything else of value to accrue to
the underwriters or finders in connection with the offering or, if the selling
discounts or commissions are variable, the basis of determining them and their
maximum and minimum amounts; the estimated amounts of other selling expenses,
including legal, engineering, and accounting charges; the name and address of
each underwriter and each recipient of a finder's fee; a copy of any
underwriting or selling group agreement under which the distribution is to be
made or the proposed form of any such agreement whose terms have not yet been
determined; and a description of the plan of distribution of any securities
that are to be offered otherwise than through an underwriter;
(9) the
estimated monetary proceeds to be received by the issuer from the offering; the
purposes for which the proceeds are to be used by the issuer; the estimated
amount to be used for each purpose; the order or priority in which the proceeds
will be used for the purposes stated; the amounts of any funds to be raised
from other sources to achieve the purposes stated; the sources of the funds;
and, if a part of the proceeds is to be used to acquire property, including
goodwill, otherwise than in the ordinary course of business, the names and
addresses of the vendors, the purchase price, the names of any persons that
have received commissions in connection with the acquisition, and the amounts
of the commissions and other expenses in connection with the acquisition,
including the cost of borrowing money to finance the acquisition;
(10) a
description of any stock options or other security options outstanding, or to
be created in connection with the offering, and the amount of those options
held or to be held by each person required to be named in subdivisions (2),
(4), (5), (6), or (8) of this subsection and by any person that holds or will
hold 10 percent or more in the aggregate of those options;
(11) the dates
of, parties to, and general effect concisely stated of each managerial or other
material contract made or to be made otherwise than in the ordinary course of
business to be performed in whole or in part at or after the filing of the
registration statement or that was made within the previous two years, and a
copy of the contract;
(12) a
description of any pending litigation, action, or proceeding to which the
issuer is a party and that materially affects its business or assets, and any
litigation, action, or proceeding known to be contemplated by governmental
authorities;
(13) a copy of
any prospectus, pamphlet, circular, form letter, advertisement, or other sales
literature intended as of the effective date to be used in connection with the
offering and any solicitation of interest used in compliance with subdivision
5202(17)(B) of this chapter;
(14) a specimen
or copy of the security being registered, unless the security is
uncertificated; a copy of the issuer's articles of incorporation and bylaws or
their substantial equivalents, in effect; and a copy of any indenture or other
instrument covering the security to be registered;
(15) a signed or
conformed copy of an opinion of counsel concerning the legality of the security
being registered, with an English translation if it is in a language other than
English, which states whether the security when sold will be validly issued,
fully paid, and nonassessable and, if a debt security, a binding obligation of
the issuer;
(16) a signed or
conformed copy of a consent of any accountant, engineer, appraiser, or other
person whose profession gives authority for a statement made by the person, if
the person is named as having prepared or certified a report or valuation,
other than an official record, that is public, which is used in connection with
the registration statement;
(17) a balance
sheet of the issuer as of a date within four months before the filing of the
registration statement; a statement of income and a statement of cash flows for
each of the three fiscal years preceding the date of the balance sheet and for
any period between the close of the immediately previous fiscal year and the
date of the balance sheet, or for the period of the issuer's and any
predecessor's existence if less than three years; and, if any part of the
proceeds of the offering is to be applied to the purchase of a business, the
financial statements that would be required if that business were the
registrant; and
(18) any
additional information or records required by rule adopted or order issued
under this chapter.
(c) A
registration statement under this section becomes effective 30 days, or any
shorter period provided by rule adopted or order issued under this chapter,
after the date the registration statement or the last amendment other than a
price amendment is filed, if:
(1) a stop order
is not in effect, and a proceeding is not pending under section 5306 of this
chapter;
(2) the
Commissioner has not issued an order under section 5306 of this chapter
delaying effectiveness;
(3) the applicant
or registrant and the Commissioner or the Commissioner's designee have not
mutually agreed to delay effectiveness for a specified period of time; or
(4) the
applicant or registrant has not requested that effectiveness be delayed.
(d) The
Commissioner may delay effectiveness once for not more than 90 days if the
Commissioner determines the registration statement is not complete in all
material respects and promptly notifies the applicant or registrant of that
determination. The Commissioner may also delay effectiveness for a further
period of not more than 30 days if the Commissioner determines that the delay
is necessary or appropriate.
(e) A rule
adopted or order issued under this chapter may require as a condition of
registration under this section that a prospectus containing a specified part
of the information or record specified in subsection (b) of this section be
sent or given to each person to which an offer is made, before or concurrently,
with the earliest of:
(1) the first
offer made in a record to the person otherwise than by means of a public
advertisement, by or for the account of the issuer or another person on whose
behalf the offering is being made or by an underwriter or broker-dealer that is
offering part of an unsold allotment or subscription taken by the person as a
participant in the distribution;
(2) the
confirmation of a sale made by or for the account of the person;
(3) payment
pursuant to such a sale; or
(4) delivery of
the security pursuant to such a sale. (Added 2005, No. 11, § 1, eff. July 1,
2006.)