Please note that the National Assembly of Panama is in the process of approving Draft Bill No.183, amending Law 47 of 6 August 2013, which adopts a custody scheme for shares issued to bearer.
Under the new law, the period of entry into force of the law will be reduced from two (2) years to 10 days after its approval.
The Draft Bill contains the following additional amendments to the existing version of Law 47 of 2013:
APPOINTMENT OF AN AUTHORISED CUSTODIAN:
This appointment needs to be registered at the Public Registry. It should be approved by either the Board of Directors or the Board of Shareholders prior to its registration.
Bearer shares issued before this law will need to be changed to registered shares or be placed in custody by December 2015. The transitional period is being reduced with this amendment to the 31st December 2015.
In view of the above, we consider it appropriate to begin aligning our procedures with the changes in the law and regulations of Panama. Therefore, as of today’s date, standard Panamanian corporations that we incorporate will allow the issuance of registered shares only.
In cases where clients require the ability to include the issue of bearer shares, the corporation will need to approve the adoption of the custody regime and the certificates will need to be kept by an “Authorised Custodian”, as outlined above. We are able to offer this service.
Please find below the documents we require in order to provide the Bearer Shares Custody Service:
Authorised custody agreement
Affidavit of the bearer shares owner
Final beneficiaries form
Minutes of a meeting of the board of directors or shareholders authorising the Panamanian corporation to be governed by the custodian regime.
After approval of this Bill, the amendment will come into force the day after its publication in the Official Gazette. We will keep you informed of new developments to ensure compliance with this regulation.
Should you need any further clarification, please do not hesitate to contact us at: firstname.lastname@example.org
Cardwell Advisory Desk