Romania: Bearer Shares will be outlawed

6. November 2018 | Reading Time: 1 Min

It’s official: Bearer shares will be outlawed in Romania to prevent and combat money laundering and terrorism financing.

Replacement with registered shares

All bearer shares issued before the new law comes into effect are to be replaced with registered shares, with the updated Articles of Association to be submitted to the Trade Registry.

Holders of bearer shares in any capacity must hand in these shares at the headquarters of the issuing company within 18 months of the law coming into force.

Any bearer shares not surrendered to the issuing company will automatically become void on the date of expiry of the aforementioned deadline, with the share capital of the company decreasing accordingly.

What happens to not converted shares?

In the event that a joint stock or limited liability joint stock company fails to convert their bearer shares into registered shares within the established deadline, the company in question will be dissolved.

If you have questions about bearer shares, get in contact with our TPA legal expert Gheorghita Cristina

Source: Draft Law on the prevention and combating of money laundering and terrorism financing and the amendment and completion of various legislative acts, adopted by the Romanian Parliament on 24 October 2018 and still to be published in the Official Gazette of Romania.