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Company obligations regarding mandatory dematerialisation of shares

16.12.2019

Authors:
Piotr Jackowski
Katarzyna Biarda

On 1 January 2020, a significant part of the provisions of the Act of 30 August 2019 amending the Code of Commercial Companies mainly concerning the introduction of mandatory dematerialisation of bearer and registered shares in joint-stock companies and limited joint-stock partnerships, which are not subject to mandatory dematerialisation within the meaning of the provisions of the Act on Public Offerings, the Act on Trading in Financial Instruments and related regulations, enters into force. 

What will happen to shares in document form?

On 1 January 2021, all shares will by force of law cease to be valid and shareholders will be the persons listed in the shareholder register. After this date, shares will not take the form of a document confirming the shareholder's status, but only a document needed to update the shareholder register, though only until 1 January 2026. After this date, shareholders whose share documents have not been submitted to the company and are not included in the shareholder register will lose protection for their rights under the shares.

Full content of the legal alert is available in attached PDF.

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