Frank Nez on LinkedIn: MULN Stock: 5 Billion Shares in Illegal Scheme Now Confirmed (2024)

Share market is fine, but what is gray market, neither rules nor law, then how this market works, know every detail#law #BSESENSEX #businessnews #detail #Fine #Gray #graymarketnews #greymarket #IPO #market #nonews #rules #share #Sharemarket #sharemarketupdate #smelly #Works

For both joint stock companies and limited liability companies, the provisions applicable to the transfer will vary depending on whether the shares are attached to a share certificate or not, and also depending on the type of share certificates.In joint stock companies, share transfers can be made in ordinary written form, while in limited liability companies, it is necessary to notarize share transfer agreements.Joint stock companies are companies with fixed capital and shareholders do not have the right to exit the company. The only way for shareholders to terminate their relationship with the company is to transfer their shares. For this reason, if the company does not approve the share transfer, the shareholders may file a lawsuit.In terms of limited liability companies, the shareholder whose share transfer is not approved "may exercise the right to leave the company for just cause."https://lnkd.in/gspyTdX4

2

Quick tip:Par value represents a stock’s legal capital. It is an arbitrary value assigned to stock before itis issued. Par value represents a shareholder’s liability ceiling because, as long as the parvalue has been paid in to the corporation, the shareholders obtain the benefits of limitedliability.

Legal ownership and beneficial ownership of shares may be different.In her Business Mirror article, "𝗕𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗹 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗼𝗳 𝗦𝗵𝗮𝗿𝗲𝘀" BDB Law Junior Partner, Atty. Mabel] Buted, discusses the concept of beneficial ownership of shares and the importance of disclosing information pertaining to the beneficial owners of a corporation to promote transparency. To continue reading, please click the link:https://lnkd.in/gSMrSuk9#BDBLaw #WTSGlobal #TaxLawPH #SEC #BeneficialOwnership

4

Electric vehicle manufacturer Mullen Automotive (MULN) is taking legal action against major Wall Street brokerage firms, including TD Ameritrade, Charles Schwab, and National Finance Services (Fidelity). The lawsuit alleges that these firms have participated in manipulative practices, including naked short selling, to drive down Mullen's share price.Mullen's CEO, David Michery, argues that these actions have significantly harmed the company and its shareholders, "We believe the company and its shareholders have been significantly harmed by certain traders and their brokers and market makers, such as the named defendants in the lawsuit, that have facilitated this unlawful conduct." Mullen intends to use all legal means available to stop such activities and protect its shareholders.Currently trading at approximately 50 cents per share, Mullen has struggled to maintain its listing on Nasdaq. Since its IPO in 2021, the company's shares have plummeted by over 99%. Several factors contribute to this dramatic decline, including a lack of revenue generation over the past two years and substantial operating losses of nearly $960 million in 2022.To secure funding for ongoing operations, Mullen has increased share issuance from 1.75 billion to 5 billion shares, significantly impacting its share price. In May, the company executed a 1-for-25 reverse stock split to avoid Nasdaq delisting, briefly raising the share price above $1. However, this did not prevent further decline, resulting in a 93% loss in the months following the reverse split.To address the negative impacts of its share price, Mullen initiated a $25 million buyback program in August, aiming to repurchase 3.7 million shares by December 31, 2023. CEO David Michery also purchased 102,040 shares on the open market in August. The buyback program aims to prevent delisting but may hinder further equity offerings, potentially leading to bankruptcy if a rapid turnaround doesn't occur.While it's challenging to determine if there was indeed naked short selling and the brokerage firms named in the lawsuit engaged in illegal trading activities, Mullen's share price woes are partially attributed to its strategic decisions, including diluting outstanding shares. Mullen's legal action against brokerage firms underscores the challenges the company faces as it navigates a turbulent financial landscape. While questions about illegal trading persist, the underlying factors affecting its share price remain complex, rooted in the company's financial struggles and strategic decisions.https://lnkd.in/eqiaCA26 #business #ev #shortselling #makets #volatility #nasdaq

20

4 Comments

Quick tip:Par value represents a stock’s legal capital. It is an arbitrary value assigned to stock before itis issued. Par value represents a shareholder’s liability ceiling because, as long as the parvalue has been paid in to the corporation, the shareholders obtain the benefits of limitedliability.

1

Will Chivers looks at key factors to consider when deciding whether to include share transfer restrictions in the articles or in a shareholders’ agreement.#corporatelaw #legalinsight #sharetransfer

68

6 Comments

From Dechert LLP: In 2023, the Delaware Court of Chancery provided important guidance for companies and #stockholders for inspection demands under Section 220 of the Delaware General Corporation Law. In various decisions, the Court addressed the ability of issue-motivated investors and their counsel to inspect corporate records related to the ESG-related decisions of a board of directors, underscored that formal board materials typically satisfy the properly stated purpose of a demand absent a clear showing by the stockholder that such materials are insufficient, and warned companies against producing board materials with redactions that the Court could perceive as excessive.#delaware #booksandrecords #inspectiondemands #boardofdirectors

1

On June 27, 2023, the U.S. Federal Trade Commission, with the collaboration and concurrence of the Antitrust Division of the U.S. Department of Justice, announced a Notice of Proposed Rulemaking that proposes extensive changes to the Hart-Scott-Rodino Premerger Notification Form (HSR Form) requirements and instructions. The proposed rulemaking is the first time the agencies have made any meaningful changes to the HSR Form since the premerger notification regime was established 45 years ago. Read more. https://lnkd.in/eecv3gu4

3

Check out our latest article titled "Disguised Dismissal In Joint Stock Companies", written by our Senior AttorneyCeyda Ceylan Uygunin English onMondaq!https://lnkd.in/dxqED8-f#mondaq #jointstockcompany #disguiseddismissal #dismissal #article

2