Legal Question in Business Law in California

I think it depends upon whose stationery or corporate record system you are buying and using.

I provide most of my new incorporation clients with corporate kits prepared and sold by Blumberg Law Products, with headquarters in New York City and several plants and sales offices around the country - also sometimes known as Blumberg/Excelsior.

Thir stock-transfer sheets have a place to glue in the old, canceled certificate from the seller. and places to record information about the replacement certificate(s) issued to the buyer and, if the seller sold less than all his or her shares, to the seller.

If, for example, Certificate #1 was issued to the seller for 100 shares, and the seller then sold 75 shares after shares were issued to X and Y on Certificates #2 and #3, the secretary should cancel #1 and issue Certificates #4 for 75 shares and #5 for 25 shares (or vice versa).

There is also a blank folio entitled "Transfer Ledger" in the kit.

A well-prepared set of corporate-secretary stationery should provide for stock transfers after the original issuance. You might want to look at Blumberg's web site. Send me a FAX number and I'll FAX you the pages mentioned.