Yesterday the National Assembly of Panama approved a law project No. 568 that will immobilize bearer shares. This law project must now be submitted to the President of Panama for it to be sanctioned, which we expect to happen within the next couple of days.
As advised, the law project contemplates the immobilization of bearer shares, which means that the share certificates of companies that have been issued to the bearer prior to the approval of the law, will have to returned to the designated custodian (the registered agent, bank or trust company) in Panama in exchange for a custody certificate. All companies that in the future are incorporated with bearer shares, will have to leave the bearer shares under custody.
This law project looks to comply with the demands of the OECD and the "peer review" that will be held in our country within the next few months.
It is important to suggest, although the Law contemplates entering into effect in two years, that you start taking all the measures you deemed convenient in order to mitigate the effects of this new law once it enters into effect.
We will keep you informed of any other change regarding this particular matter.