On February 5, 2016, the Luxembourg Caisse de Consignation has released a series of frequently asked questions summarising the key aspects related to the Luxembourg law of 28 July 2014 regarding immobilisation of bearer shares and units (the "2014 Law").
The FAQ provides useful information with regard to the scope of the 2014 Law and the obligations for companies that issued bearer shares before and after the entry into force of the 2014 Law.
Further on, the paper covers inter alia (i) the method to calculate the price of the shares when cancelling non-immobilised bearer shares, (ii) the procedure for the reduction of capital, (iii) the required documents to be submitted when depositing the assets with the Caisse de Consignation, (iv) applicable fees, and finally (iv) the list of documents that must be presented to the Caisse de consignation by the holder of a certificate representing the bearer share(s) cancelled in order to receive the price corresponding to the capital reduction.
The Luxembourg Bankers' Association (ABBL) and the Association of the Luxembourg Fund Industry (ALFI) have prepared an English language translation of the FAQs that can be accessed here. Additionally, the Commission de Surveillance du Secteur Financier has prepared its own version of FAQ regarding the main aspects regulated by 2014 Law. The CSSF FAQ can be accessed here.
Olivier Sciales
Chevalier & Sciales
Partner
Route de Thionville 51
2611 Luxembourg
Office: + 352 26 25 90 30
Fax: +352 26 25 83 88
Email: oliviersciales@cs-avocats.lu
website:
www.cs-avocats.lu
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