In an analysis piece by Osvaldo Lau C. in Prensa.com regarding the implications of the recently passed Law 47, he writes that "After a long run, bearer shares are to survive thanks to a special regime created by Law 47 of August 6, 2013, which also creates the custodians of certificates issued to bearers, so as to not remove them completely from our legislation. "

"... Bearer share certificates issued before the effective date, must be delivered to an authorized custodian along with an affidavit within three years, as stated in Article 24 (sic)."

"... The deadline for the three years indicated in the previous paragraph, according to the enforcement of the law in question, will expire on August 5, 2018. I do not recall a legal application ever being so long. "

Source: Prensa.com

More on this topic

Fast Tracking of Immobilization of Bearer Shares

April 2015

In Panama a deadline has been bourght forward to December 31, 2015 for companies with bearer shares to turn them into registered shares or hand them in to custody.

Along with the change in the transition period is a new date for the entry into force of Act 47 of 2013, which was originally scheduled for two years after its enactment, but will now take effect ten days after it has been published.

Panama Approves Immobilization of Bearer Shares

July 2013

Panamanian Congress has finally approved the law which imposes a safekeeping regime on bearer shares.

From a press release issued by the National Assembly of Panama:

Draft Law No. 568, which regulates shares by allowing their immobilization was approved by the plenary of the National Assembly on its third reading.

Panama Banking Act Supports Bearer Shares

March 2013

Panamanian Bankers believe that the sector will not be affected by the new provision, and are asking for it to take effect quickly.

The Panama Banking Association has spoken in favor of the approval of the project that adopts a scheme applicable to shares issued to the bearer, and believes that once the law is passed, it should enter into force in the next three months, not in two years as the law had contemplated.

Draft Law on Custody of Bearer Shares

February 2013

The Cabinet Council of Panama has approved a draft law on adopting a regime for custody certificates issued as bearer shares.

From the press release issued by the Presidency of Panama:
The Cabinet Council approved a draft law on adopting a regime of custody certificates for bearer shares issued as part of the actions implemented by this administration designed to get in line with international standards and to position the country as a cooperate in the fight against the misuse of financial services.