Seychelles to abolish bearer shares

Seychelles to abolish bearer shares

The International Business Companies (IBC) (Amendment) Act, 2013 (hereinafter referred to as the Act), being in force since December 16, 2013, introduced substantial changes in Seychelles corporate law, abolishing bearer shares. Bearer shares were considered to be a very convenient instrument for businessmen as they were simple in use and guaranteed desirable privacy. The Act, putting an end to bearer shares, stipulates the following (the Act can be found here):

 Every company which has issued bearer shares prior to the commencement of the Act shall recall and cancel such shares within six months from the date of such commencement and the company shall issue registered shares in substitution for the cancelled bearer shares.

 Any bearer shares which have not been recalled and cancelled within that period of six months shall thereafter be null and void.

 A director of an international business company shall not issue any bearer shares on and after the commencement of the Act.

Deadline for the necessary steps to “convert” bearer shares into registered shares passed on the 16 June 2014, so from that time any bearer share is to be considered null and void, in other words nonexistent.