Shares Transfer and its due Registration
Corporations must have a shares record book, where the name, nationality, and address of each partner or shareholder is registered; pointing out their contributions and; where appropriate, the transfer of their shares. The existence of the shares record book is really important because the Company considers as shares’ owners to the person who is registered in said book, additionally, registration notice must be given to the Ministry of Economy.
The shares are autonomous titles that can be transferred through a simple endorsement, however, it does not take effect with the simple fact of endorsing the nominative titles that represent them, but it is necessary to write down the entry in the shares record book of the Company, in order to grant the acquirer the legitimacy to exercise their rights as a partner or shareholder before the Company, while the Company is empowered to demand that it comply with the obligations related to its partnership or shareholder.
Given the importance of having a shares record book and notify the Ministry of Economy about the register, as well as to avoid any future risk and/or controversy for breaching the corporate obligations of the Company, it is necessary to have proper legal consulting; reason why we put ourselves at your service to provide you our corporate legal services.