Icuronittwo : To my knowledge all persons owning five percent or greater of the official outstanding shares ( not Authorized Shares ) must file a Form 4 with the SEC . Since I have never been in such a situation I do not know for sure whether one's brokerage or the SEC informs the shareholder of their immediate necessity to file . With LTDI I think that the CEDE shares are not part of LTDI's O/S , whereas the Restricted Shares are part of the O/S , just not free trading until the restrictive covenants are fulfilled .
On an aside and not related to LTDI ( to my knowledge ) , Convertible Debenture holders do not usually own more than .0499 % of outstanding shares and therefore do not need to file Form 4's , and that is why serial diluting companies have ballooning outstanding share counts daily / weekly / monthly . So , one day a retail person may own .05 % of the O/S and the very next day be under the .05 % threshold .
It becomes almost unenforceable with non-reporting OTC stocks unless they file an SEC 8-K declaring the official outstanding shares .
Someone else may correct me if I have omitted or am incorrect in any details .
Renee
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