Portugal | 2017.09.29

Decree-Law no. 123/2017, of 25 September 2017, has just been gazetted. It regulates Law no. 15/2017, of 3 May 2017, by establishing the rules applicable to the conversion of bearer shares into nominative shares.


Issuers of bearer shares must convert them into nominative shares within a maximum term of six months as from the date of entry into force of Law no. 15/2017, of 3 May 2017, i.e., until 4 November 2017 ("Transitional Period").


During the Transitional Period, joint stock companies (“sociedades anónimas”) that have its share capital represented by bearer shares must comply with several obligations aimed at completing the conversion procedure.


Failure to comply with the conversion obligation during the Transitional Period entails different consequences depending on the type of bearer shares. In some cases it may lead to the conversion of the shares on the last day of the Transitional Period and, in other cases, to the prohibition to transfer such shares and the suspension of the right to dividend distributions.


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