Determination of right ownership in bearer share shares

Abstract

Bearer shares can be issued, if there is a provision in the articles of association and the prices have been fully paid in accordance with TTK m.484/II. Bearer bonds issued in violation of this provision are invalid. In order for the registered share certificates to be converted into bearer share certificates, the price of the shares must be fully paid, (TTK m.485/II). According to TTK m.496/II, the board of directors prints the bearer shares and distributes them to the shareholders within three months from the date of payment of the full share price. This decision of the Board of Directors regarding the printing of bearer share certificates is registered and announced, and also published on the company's website. Information about the bearer shareholders and the shares they hold are notified to the Central Registry Agency before the shares are distributed to the shareholders. Until the share certificate is printed, the certificate can be issued. Provisions regarding registered share certificates are applied by analogy to the certificates. The transfer of bearer share certificates shall be valid for the company and third parties only with the notification to be made to the Central Registry Agency by the transferee of the share by passing the possession. In the absence of notification to the Central Registry Agency, holders of bearer share certificates cannot exercise their share-related rights arising from this Law until the necessary notification is made. The date of notification made to the Central Registry Agency is taken as a basis in asserting the rights attached to the bearer share certificates against the company and third parties, (TTK m.489/I, II). In case the transferee applies to the company, the transfer notification is made through the company (Communiqué on Notification and Registration of Bearer Shares to the Central Registry Agency m. 5/I). In accordance with TTK m.426/II, the person who proves that the bearer share certificate is in possession and is notified to the Central Registry Ag.