Regulatory Alerts2016-10-27
Cancelling Bearer Shares and Promissory Notes
The Parliament of Lebanon enacted Law No. 75 to prohibit joint stock companies from issuing new bearer shares and promissory notes while mandating the conversion of existing ones into registered shares within one year. Companies must notify holders through official publications and amend their bylaws, facing a fifty percent capital fine for noncompliance, while unexchanged shares lose voting and board eligibility rights until converted. After a two-year transition period, unconverted shares automatically transfer to the Lebanese State and become subject to specific income tax provisions on unclaimed dividends.
Share