Document:

Exhibit 4.3

 

DESCRIPTION OF VILLAGE BANK AND TRUST
FINANCIAL CORP.’S SECURITIES

 

As of December 31,
2019, the common stock of Village Bank and Trust Financial Corp. (the “Company”) was the only class of its securities
registered under Section 12 of the Securities Exchange Act of 1934. The following summary description of the material features
of the Company’s common stock does not purport to be complete and is subject to, and qualified in its entirety by reference
to, the Company’s articles of incorporation and bylaws, each as amended. For more information, refer to the Company’s
articles of incorporation and bylaws and any applicable provisions of relevant law, including the Virginia Stock Corporation Act
and federal laws governing banks and bank holding companies.

 

General

 

The Company is authorized
to issue 10,000,000 shares of common stock, par value $4.00 per share. Each share of the Company’s common stock has the same
relative rights as, and is identical in all respects to, each other share of the Company’s common stock. The Company’s
common stock is listed on the Nasdaq Capital Market under the symbol “VBFC.” Computershare, Inc., 250 Royall Street,
Canton, Massachusetts, is the transfer agent for the Company’s common stock.

 

Voting Rights

 

Except as otherwise
provided by law, each holder of the Company’s common stock has one vote per share on all matters voted upon by shareholders.
Directors are elected by a plurality of the votes cast and shareholders do not have the right to accumulate their votes in the
election of directors.

 

Dividends

 

Holders of shares of
the Company’s common stock are entitled to receive dividends when and as declared by the Company’s board of directors
out of funds legally available therefor. The payment of distributions by the Company is subject to the restrictions of Virginia
law applicable to the declaration of distributions by a corporation. A Virginia corporation generally may not authorize and make
distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual
course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount
that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior
to the rights of those receiving the distribution. In addition, the payment of distributions to shareholders is subject to any
prior rights of outstanding preferred stock.

 

As a bank holding company,
the Company’s ability to pay dividends is affected by the ability of Village Bank, the Company’s bank subsidiary, to
pay dividends to the Company. The ability of Village Bank to pay dividends is influenced by bank regulatory requirements and capital
guidelines.

 

Liquidation Rights

 

In the event of the
Company’s liquidation, dissolution or winding up, the holders of shares of the Company’s common stock are entitled
to receive, in cash or in kind, the Company’s assets available for distribution remaining after payment or provision for
payment of the Company debts and liabilities and after satisfaction of all liquidation preferences applicable to any preferred
stock.

 

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Classes of Directors

 

The Company’s
board of directors is divided into three classes, apportioned as evenly as possible, with directors serving staggered three-year
terms.

 

No Preemptive or Conversion Rights;
Redemption and Assessment

 

Holders of shares of
the Company’s common stock do not have preemptive rights to purchase additional shares of common stock and have no conversion
or redemption rights. The Company’s common stock is not subject to redemption or any sinking fund and the outstanding shares
are fully paid and nonassessable.

 

Preferred Stock

 

The Company’s
board of directors may, from time to time, without shareholder approval, issue shares of the Company’s authorized, undesignated
preferred stock, in one or more classes or series. In connection with any such issuance, the board of directors may by resolution
determine the designation, voting rights, preferences as to dividends, in liquidation or otherwise, participation, redemption,
sinking fund, conversion, dividend or other special rights or powers, and the limitations, qualifications and restrictions of such
shares of preferred stock. The creation and issuance of any series of preferred stock, and the relative rights, designations and
preferences of such series, if and when established, will depend upon, among other things, the future capital needs of the Company,
then existing market conditions and other factors that, in the judgment of the Company’s board, might warrant the issuance
of preferred stock.

 

Anti-takeover Considerations

 

Certain provisions
of the Company’s articles of incorporation and bylaws may discourage attempts to acquire control of the Company. These provisions
also may render the removal of one or all directors more difficult or deter or delay corporate changes of control that the Company’s
board of directors did not approve. These provisions include the following:

 

Classified Board
of Directors. The Company’s board of directors is divided into three classes of directors serving staggered three-year
terms. As a result, approximately one-third of the board of directors will be elected at each annual meeting of shareholders. The
classification of directors, together with the provision in the articles of incorporation that permits the remaining directors
to fill any vacancies on the board of directors, will have the effect of making it more difficult for shareholders to change the
composition of the board of directors. As a result, at least two annual meetings of shareholders may be required for the shareholders
to change a majority of the directors, whether or not a change in the board of directors would be beneficial and whether or not
a majority of shareholders believe that such a change would be desirable.

 

Authorized Preferred
Stock. The Company’s articles of incorporation authorize the board of directors, subject to applicable Virginia law and
federal banking regulations, to authorize the issuance of preferred stock at such times, for such purposes and for such consideration
as the board may deem advisable without further shareholder approval. The issuance of preferred stock under certain circumstances
may have the effect of discouraging an attempt by a third party to acquire control of the Company by, for example, authorizing
the issuance of a series of preferred stock with rights and preferences designed to impede the proposed transaction.

 

Supermajority Voting
Provisions. The Company’s articles of incorporation state that certain significant corporate actions must be approved
by a majority of all the votes entitled to be cast on the action by each voting group entitled to vote at a meeting at which a
quorum of the voting group is present, provided that the action has been approved and recommended by at least two-thirds of the
directors in office at the time of such approval and recommendation. If the action is not so approved and recommended by two-thirds
of the directors in office, then the action must be approved by the affirmative vote of 80% or more of all of the votes entitled
to be cast on such action by each voting group entitled to vote. These significant corporate actions include: adoption of amendments
to the Company’s articles of incorporation; adoption of plans of merger or share exchange; sales of all or substantially
all of the Company’s assets other than in the ordinary course of business; and adoption of plans of dissolution.

 

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No Cumulative Voting.
The Company’s articles of incorporation do not provide for cumulative voting for any purpose. The absence of cumulative voting
may afford anti-takeover protection by making it more difficult for the Company’s shareholders to elect nominees opposed
by the board of directors.

 

Shareholder Meetings.
Pursuant to the Company’s bylaws, special meetings of shareholders may be called only by the Company’s president or
board of directors. As a result, shareholders are not able to act on matters other than at annual shareholders’ meetings
unless they are able to persuade the president or a majority of the board of directors to call a special meeting.

 

Advance Notification
Requirements. The Company’s bylaws require a shareholder who desires to raise new business, or nominate a candidate for
election to the board of directors, at an annual meeting of shareholders to provide advance notice of at least 60 days and not
more than 90 days before the date of the scheduled annual meeting; provided that in the event that less than 70 days’ notice
or prior public disclosure of the date of the scheduled annual meeting is given or made, notice by a shareholder, to be timely,
must be received not later than the close of business on the 10th day following the earlier of the date on which such notice of
the meeting was mailed or the date public disclosure of the meeting was made. The bylaws require a shareholder who desires to raise
new business to provide certain information to the Company concerning the nature of the new business, the shareholder and the shareholder’s
interest in the business matter. Similarly, a shareholder wishing to nominate any person for election as a director must provide
the Company with certain information concerning the nominee and the proposing shareholder. Such requirements may discourage the
Company’s shareholders from submitting nominations and proposals.

 

    	 	3Exhibit

Exhibit 4.12
DESCRIPTION OF SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF 
THE SECURITIES EXCHANGE ACT OF 1934

The following summary describes the common stock, par value $0.00001 per share, of GAIN Capital Holdings, Inc. (the “Company,” “we,” “us” and “our”), which is the only class of securities of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.
The following description of our common stock is based upon our amended and restated certificate of incorporation (“certificate of incorporation”), our amended and restated by-laws (“by-laws”) and applicable provisions of law. We have summarized certain portions of our certificate of incorporation and by-laws below. The summary is not complete. Our certificate of incorporation and by-laws have been incorporated by reference as exhibits to the Annual Report on Form 10-K of which this Exhibit 4.12 is a part. You should read our certificate of incorporation and by-laws for the provisions that are important to you.
Certain provisions of the Delaware General Corporation Law, our certificate of incorporation and our by-laws may have an anti-takeover effect. This may delay, defer or prevent a tender offer or takeover attempt that a stockholder might consider in its best interests, including those attempts that might result in a premium over the market price for shares of our common stock.
General
Our authorized capital stock consists of 120,000,000 shares of common stock, par value $0.00001 per share, and 15,000,000 shares of preferred stock, par value $0.00001 per share.  The following description of our common stock and the provisions of our certificate of incorporation and by-laws are summaries and are qualified by reference to our certificate of incorporation and by-laws.
Common Stock
The holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. The holders of common stock are entitled to receive ratably those dividends, if any, that may be declared from time to time by our Board out of funds legally available, subject to preferences that may be applicable to preferred stock, if any, then outstanding. In the event of a liquidation, dissolution or winding up of our company, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. The common stock has no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable.
Preferred Stock
The Board is authorized to issue preferred stock in one or more series, to establish the number of shares to be included in each such series and to fix the designation, powers, preferences and rights of these shares and any qualifications, limitations or restrictions thereof. The issuance of preferred stock may have the effect of delaying, deferring or preventing a change in control of the Company without further action by the stockholders and may adversely affect the voting and other rights of the holders of common stock. The issuance of preferred stock with voting and conversion rights may adversely affect the voting power of the holders of common stock, including the loss of voting control to others.
Anti-Takeover Provisions
Some provisions of Delaware law and our certificate of incorporation and by-laws could make the following transactions more difficult:
		
	•
	Acquisition of the Company by means of a tender offer, a proxy contest or otherwise; and

		
	•
	Removal of our incumbent officers and directors.

These provisions, summarized below, are expected to discourage and prevent coercive takeover practices and inadequate takeover bids. These provisions are designed to encourage persons seeking to acquire control of the Company to negotiate first with the Board. They are also intended to provide our management with the flexibility to enhance the likelihood of continuity and stability if the Board determines that a takeover is not in the best interests of our stockholders. These provisions, however, could have the effect of discouraging attempts to acquire us, which could deprive our stockholders of opportunities to sell their 

shares of common stock at prices higher than prevailing market prices. We believe that the benefits of these provisions, including increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure the Company, outweigh the disadvantages of discouraging takeover proposals, because negotiation of takeover proposals could result in an improvement of their terms.
Election and Removal of Directors. Our certificate of incorporation and by-laws contain provisions that establish specific procedures for appointing and removing members of the Board. Under our certificate of incorporation and by-laws, the Board consists of three classes of directors: Class I, Class II and Class III. A nominee for director shall be elected to the Board if the votes cast for such nominee’s election exceed the votes cast against such nominee’s election; provided, however, under certain circumstances, directors shall be elected by a plurality of the votes cast at any meeting of stockholders. Each director will serve a three-year term and will stand for election upon the third anniversary of the annual meeting at which such director was elected. In addition, our certificate of incorporation and by-laws provide that vacancies and newly created directorships on the Board may be filled only by a majority of the directors then serving on the Board, except as otherwise required by law or by resolution of the Board. Directors may be removed by the stockholders only for cause and only by the affirmative vote of the holders of at least two-thirds of the voting power of all of the then-outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together as a single class.
Special Stockholder Meetings. Under our certificate of incorporation and by-laws, only the Board, the Chairman of the Board, the President and the Chief Executive Officer may call special meetings of stockholders.
Requirements for Advance Notification of Stockholder Nominations and Proposals. Our by-laws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the Board or a committee of the Board.
Delaware Anti-Takeover Law. We are subject to Section 203 of the Delaware General Corporation Law, which is an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date that the person became an interested stockholder, unless the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Generally, a business combination includes a merger, asset or stock sale, or another transaction resulting in a financial benefit to the interested stockholder. Generally, an interested stockholder is a person who, together with affiliates and associates, owns 15% or more of the corporation’s voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions that are not approved in advance by the Board, including discouraging attempts that might result in a premium over the market price for the shares of common stock held by stockholders.
Elimination of Stockholder Action by Written Consent. Our certificate of incorporation and by-laws eliminate the right of stockholders to act by written consent without a meeting.
No Cumulative Voting. Under Delaware law, cumulative voting for the election of directors is not permitted unless a corporation’s certificate of incorporation authorizes cumulative voting. Our certificate of incorporation does not provide for cumulative voting in the election of directors. Cumulative voting allows a minority stockholder to vote a portion or all of its shares for one or more candidates for seats on the Board. Without cumulative voting, a minority stockholder will not be able to gain as many seats on the Board based on the number of shares of our stock the stockholder holds as the stockholder would be able to gain if cumulative voting were permitted. The absence of cumulative voting makes it more difficult for a minority stockholder to gain a seat on the Board to influence its decision regarding a takeover.
Undesignated Preferred Stock. The authorization of undesignated preferred stock makes it possible for the Board to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of our company.
Stockholder Rights Plan. We have adopted a stockholder rights plan, commonly referred to as a poison pill. The stockholder rights plan is designed to reduce the likelihood that a potential acquirer would gain control of the Company by open market accumulation or other tactics without paying an appropriate premium for all of the Company’s shares. Under the plan, each share of our common stock issued before the occurrence of the events referred to in the next sentence is accompanied by the right described in the next sentence. Each right entitles stockholders to buy, upon occurrence of certain events, one one-hundredth of a share of a new series of participating preferred stock at an exercise price of $28.00. The rights generally will be exercisable only if a person or group acquires beneficial ownership of 15% or more of our common stock, or commences a tender or exchange offer that, upon consummation, would result in a person or group owning 15% or more of our common stock, subject to certain exceptions. Under certain circumstances the rights are redeemable at a price of $0.01 per right. Unless earlier exchanged, redeemed, amended or exercised, the rights will expire on the earlier of (i) April 9, 2022 or (ii) immediately prior to the consummation of the Merger contemplated by the Agreement and Plan of Merger, dated February 26, 

2020, by and among the Company, INTL FCStone Inc. (“INTL”) and Golf Merger Sub I Inc., a wholly owned subsidiary of INTL.
Amendment of Certificate of Incorporation Provisions. The amendment of certain of the above provisions in our certificate of incorporation and by-laws requires approval by holders of at least two-thirds of our outstanding capital stock entitled to vote generally in the election of directors.
These and other provisions could have the effect of discouraging others from attempting hostile takeovers, and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders might otherwise deem to be in their best interests.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Broadridge Corporate Issuer Solutions, Inc.
New York Stock Exchange Listing
Our common stock is traded on the New York Stock Exchange under the symbol “GCAP.”

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