Law 18 of 2015 makes modifications to articles of Law 47 previously issued in 2013. Some of the modifications are:
- Bearer share certificates issued before Act 18 became effective must be delivered to an authorized custodian along with a sworn declaration indicating the owner of the shares.
- Bearer share certificates issued after Act 18 became effective will be delivered to an authorized custodian appointed by the owner of the shares within 20 days of the validity of the law.
In both cases, the board of directors or shareholders meeting must authorize the company to use the custody regime created by this law. This authorization must be registered in the Public Registry of Panama.
How to appoint an authorized custodian?
The owner must give to the issuing company:
- Full name of authorized custodian
- Address
- Details of a person whom the company can contact if necessary, this should be a telephone number and email address.
To learn more about law 18 and the custody regime for bearer shares in Panama, see here:
