I understand that if a private company uses a crowdfunding program (like kickstarter) to get funds for a particular project, it can give the funder a gift, but not stock or equity in appreciation for the funding. Can the company also issue stock appreciation rights as the gift?
Can you give a gift to an investor (what I think you are terming a funder)? Sure, you can give them a bottle of wine or the like. That can be done now and is not conditioned on passage of HR 2930.
Can you give that investor stock as a gift (assuming it is not tax-advantaged) without HR 2930? Sure. Can you give them SARs a gift? I would find that unlikely because of accounting reasons as it must be a charged to compensation on the company's income statement and for other tax and practical reasons.
SAR and phantom stock are almost always equity rights given to an employee or related provider to a company. We have structured them in conjunction with ISOs and NQOs. They are not normally doled out as gifts and I would never recommend a company do such a practice.
This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.
I am not an Arizona attorney.
SARs are securities. It is "folly" to attempt to issue securities without the participation of an attorney. I represent small and medium size companies, have some experience with SARs, but would wnat to check and double check the legal requirements, even as an attorney with experience.
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
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