Jan 02, 2016

Deadline to change bearer shares ends

The companies that issued bearer shares before May 4 of this year, 2015, should replace them by registered share certificates or deliver them into custody, before December 31.

It should be noticed that the law governing such shares, which came into force on May 4, states that:

“All companies that have issued bear shares certificates, prior this law implementation, will have a deadline of December 31, 2015, to be replaced by registered share certificates or give them to an authorized custodian (a lawyer or a bank).

The Law also states that any company issuing bear shares certificates, prior this law coming into force, must deliver them to an authorized custodian within 20 days since its issuance date.

After December 31, social pacts are considered amended by the rule of law and issuing bearer shares will be prohibited, unless they have benefited from this new regime of custody, as permitted by requirements established by law.

Contempt the law entails drawbacks. The owners of bearer shares issued before May 4, who have not submitted their certificates into custody before December 31, may not exercise neither political nor economic rights in the company. The Law states the obligation to annul corresponding bearer shares.

The new registered shares may be issued in your name or another legal person’s name, whether it is a corporation, foundation, private interest organization, or in favor of a trust.