Immobilisation of Bearer Shares And Units: Deadlines for Compulsory Deposit on 18 February 2015

The Law of 28 July 2014 concerning the compulsory deposit and immobilisation of shares and units in bearer form (the "Law") imposes the compulsory deposit and immobilisation of shares and units in bearer form and provides transitory provisions in order to appoint a depositary and to proceed with the deposit.

The last date for appointing a depositary is 18 February 2015 and the compulsory suspension of voting rights failing the deposit of the shares or units enters into force on the same date. In addition, upon expiry of this period, the distributions shall be deferred until the immobilisation date without payment of interest, provided that the distribution rights are not time-barred. The CSSF has published a Press Release 15/09 in which it reminds this deadline to all limited liability companies (sociétés anonymes), partnerships limited by shares (sociétés en commandite par actions) and UCI management companies (sociétés de gestion d'OPC) constituted under the form of common funds (FCP) which have issued shares or units in bearer form. The CSSF stresses in particular that, with regard to domiciliation agents pursuant to the Law of 31 May 1999 governing the domiciliation of companies, if a domiciliation agent should notice that the statutory bodies and representatives of a domiciled company have contravened the legal provisions governing commercial companies and the right of establishment, and therefore also the Law, the appropriate conclusions will be drawn.

See our Newsflash of 18 August 2014 for more details on this Law. See also our article on the CSSF FAQ and Reminder published in the Asset Management and Investment Funds Section of this Newsletter.