The deadline for replacement of bearer stocks issued by the trade companies with stocks in the name of a holder is 23 July 2019.

According to paragraph 11 of the Transitional and Concluding Provisions to the Law for Amendment and Supplement of the Commerce Law all bearer stocksor their substitutional interim certificates issued before its entry into force shall be replaced with stocks in the name of a holder.

By 23 July 2019 the companies that have issued bearer stocks or their substitutional interim certificatesare obliged to amend their statutesby providing that their stocks are in the name of a holder and to replace bearer stocks or their substitutional interim certificates with stocks in the name of a holder.Other obligations of the companies are to start keeping books of the shareholders, to declare for registration the changes and to submit the amended statutes to the Commercial Register.

After the entry into force of this Act, against interim certificates entitling registered bearer stocks, only stocks in the name of a holderwill bereceived.

In case a shareholder fails to submit for replacement of the bearer stocks or their substitutional interim certificates,owned by him, the company shall invalidate them.

A shareholder whose bearer stocks or their substitutional interim certificates have been invalidated could claim from the company the equivalent of the contributions made for them within 6 months of becoming aware, but no later than 5 years from the date of the invalidation.

Pursuant to paragraph 12 of the Transitional and Concluding Provisions to the Law for Amendment and Supplement of the Commerce Lawby 23 July 2019 creditors with a pledge onbearer stocks or their substitutional interim certificatesshall carry out the actions for replacement of the bearer stocks, respectively replacement of their substitutional interim certificates with stocks in the name of a holder.

Upon the replacement, the company notes on the stock in the name of a holder the pledge according to the pledge creditor’s application and enters it in the shareholder’s book.

The aforementioned rules shall be applied respectively in the event ofdistraintofthe bearer shares or their substitutional interim certificates under Art. 515, para. 1 of the Civil Procedure Code.