Distributing Stock in Public Companies - Certificates v. Book Entry

[Guest strayhorn]

Code Section 409(h)(a)(1) requires distribution "in the form of employer securities," but it does not dictate whether a physical stock certificate must be issued. I believe it is ok for a company to note the issuance in book entry form rather than issuing the physical certificates. Can anyone comment on what other public companies are doing? Thanks.

[mbozek]

Issuing paper certificates is passe. Few public co issue paper certs. All my stocks are held in book entry form at the broker. Book entry is legal form of indicia of stock ownership. I have employer stock in a 401k plan that will be distributed in a taxable transaction via book entry to my brokerage account.