Archive:Equity and Securities Code

**THE UNIVERSAL TRIUMVIRATE EQUITY AND SECURITIES CODE**
**7.17.13 | 2.1.14**
Major Executive Nathan Maine
A. Ehtya

**A Law** to create regulation and rules for public and private companies, the sale of shares, and provide for the process of publicizing and privatizing a business.

**Section 1: Definitions**

A share shall be defined as one of equal fractional parts into which the capital stock of a public company, business, or corporation is divided.
Liquidation shall be defined as the process in which a company (or part of a company) is brought to an end and dissolved and the assets and property of the company is redistributed appropriately.
**Section 2: Publicizing a Company**

If a company is private it may take a company public by putting forth a public announcement, offering a number of shares at a value they choose, and all shares must be bought before the company shall go public. The owner(s) at the time of the publicizing shall retain ownership
A business may also start out as public if those with the intent to initiate the company can orchestrate as such.
**Section 3: Sale**

Shareholders are permitted to sell their shares openly to any person they wish (unless this law prohibits the entity type from holding shares), at the rate both parties agree to, so long as a valid transaction record of the sale and the number of shares sold is made.
Shareholders may also give their shares away (not as a sale, as a gift) but must indicate this somewhere publicly so that the company to which the shares are of and the public eye can document shareholders accurately.
**Section 4: Shareholder Rights**

Shareholders shall be entitled to the following rights:
The right to sell their shares, to vote using their shares, to make shareholder resolutions, to assets that may remain proportional to their ownership of shares after liquidation, to purchase new shares issued.
**Section 5: Board of Directors**

Companies that are public must either have a board of directors and a CEO or a CEO. For companies with a board of directors, share holders are permitted to elect people to the board via a majority vote of shares. The board may appoint one of its members to act as the CEO and select other major offices on the board and may set their own rules for board management, organization, removal of the CEO, and other appropriate rules for the board of the company.
For companies that do not have a board of directors, it shall be required that shareholders be able to use their shares to elect and remove (via a majority of shares) the CEO.
**Section 5.1: Powers of the Board**
Should there be a board of directors, they shall have the power to establish broad policies and objectives for the company, approve spending for the whole company, setting salaries and entitlements, and reviewing the CEO and other major officers of the company. They shall have the duty of accounting to stockholders for the company's performance.
Should there not be a board of directors in place, the CEO shall hold all of these powers and responsibilities.
**Section 6: Public Record**

All public companies must keep a public record of their current shareholders, how many shares each hold, percentage of total shares, and professional affiliations with the company (if any).
**Section 7: Government Entity Equity Ownership**

Government entities shall not be permitted to have equity in a company with these exceptions;
A) The Department of Commerce; but only in circumstances where their purchase aides the economy, the government's interest in the economy, and does not compromise their otherwise economic activity and usefulness.
B) The Department of the Treasury; but only for the purpose of raising money for the government, or for the purpose of managing monetary policy.
C) The Office of the Major Executive; but only in situations wherein it represents a compelling and reasonable interest for the executive authority to do so.
**Section 8: Restrictions on Equity Ownership**

No political party may possess ownership of equity.
**Section 9: Privatization**

In order for a public company to revert to a private company, it shall be required that they purchase up all shares of their stock on the market, and then void them out once all are returned.
**Section 10: Stock Divide**

Public companies are permitted to divide their shares as they see fit, provided that dilution does not occur and the total worth of each shareholder remains as a result of the divide.