New Requirements For Share Issuers

An additional layer of paperwork has been imposed on joint stock companies having up to 500 shareholders which are required by 27 September 1996 to obtain a permission from the Securities Commission to operate their own share registries. The permission is issued subject to compliance of the issuer with specific requirements set out in the recent regulations of the Securities and Stock Market Commission. Joint stock companies with more than 500 shareholders must use outside registrars while the sale of registered shares must be backed up by a written contract which is a condition for passing the ownership rights to shares.

(Securities and Stock Market Commission order No 59 of 1 April 1996)