Ownership of Securities and You

Jehu Hand has become an expert in Article 8 of The United States Uniform Commercial Code (U.C.C). The U.C.C. provides the legal framework for sales, secured lending, letters of credit, banking, and other commercial transactions throughout the United States since its adoption in 1952. Some provisions of the U.C.C. are known to nearly all business lawyers; other sections are esoteric. One of the least understood provisions of the U.C.C is Article 8. Article 8 is specifically written and used in regards to securities and the ownership of securities. Jehu Hand has been an expert in Article 8 for many years. A key provision of Article 8 is that a security once issued cannot be cancelled execpt by the owner of record. The company cannot cancel the certificate nor impose a stop transfer without legal liability. Just as the government cannot “cancel” that $20 bill in your pocket, just because it has an issue with you, share certificates are fully negotiable and non-cancelable once issued. If you are a shareholder and a company has placed a stop transfer on your shares or tried to “cancel” your shares, contact Jehu Hand right away to know your rights under the law.

Jehu Hand has been counsel on a number of cases dealing with Article 8 including: Duluth Venture Capital Partners, LLC c. CleanTech Biofuels, et. Al and Filiatreaux v. Duoyuan Printing Inc. Through the and other litigation, Jehu Hand has developed an expertise in this little known, but critical, area of law.

One of the interesting ways to think of Article 8 is to think of it in the current context regarding Bitcoins. Some are arguing that Bitcoins may be recognized by the U.C.C as a form of securities. If they are then Article 8 may be able to save the Bitcoin.

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