Stock Power (M&A)

by Practical Law Corporate & Securities

This Standard Document outlines the essential components and usage of a stock power in a stock acquisition. It details the process whereby a stockholder sells, assigns, and transfers shares of stock to a buyer, accompanied by a stock certificate. The document specifies that upon completion and signature, the stock power effectively transfers ownership interest in the securities from the stockholder to the buyer. It highlights the necessity of completing bracketed items with transaction-specific details and provides options for alternative language choices, ensuring flexibility in drafting. This Standard Document emphasizes the typical practice of delivering a stock certificate alongside a signed stock power, although it is often not completed or dated at the time of delivery. Legal professionals involved in mergers and acquisitions will find this document useful for facilitating the transfer of shares.