Bearer shares-What is a bearer shares?
Bearer shares, also known as bearer shares, that means stocks and shares face the shareholders are not recorded on the register the names of shareholders to vote. Comparing it with bearer shares, the difference is not in the shareholder rights, etc., but in the way the stock records.
This is characterized by the stock ownership must be specifically hold shares in itself, holding bearer shares, the shareholders of the company prompted the need to keep the shares, the shareholders of the General Assembly carefully messages. The advantage of issuing bearer shares is simple, easy to buy and transfer, the shortfall is that the Company's shareholders is difficult to control, may lead to greater business risks. According to regulations, the public issuance of shares for bearer shares, bearer shares can also.
Bearer shares - Overview Bearer shares
The so-called bearer shares means that the stock is not recorded in the name of the holder may be any transfer of shares. Any person holding such a stock is the company's shareholders, can virtue of the equity shareholders of the company's claim the right to enjoy the rights represented by the stock. Does not issue bearer shares are normally left stub Alliance, which formally divided into two parts: the main body of the stock, the company recorded matters, such as company name, the number of shares represented by stock, etc.; the other part of the dividend votes , used for replenishment of dividends and the exercise of the rights of settlement.
a shareholder in the stock is not recorded in the name of the shares to the former Federal Republic of Germany the most popular. All holders of bearer shares, namely, the shareholders eligible. Such shares alone the attached coupon to receive stock dividends, and can therefore be freely transferable. But the bearer shares must be fully paid to the company only after the issue, because the stock is not recorded in the shareholders name, if allowed to pay part of the shares of shareholders shall the granting of stock in the future the shareholders do not know the names of outstanding shares shall not be reminders. Compared with the bearer shares, bearer shares, there are two outstanding issues, namely, inability to send letters to the shareholders, not easy to collect letters of appointment, or even affect the general meeting of shareholders; second distribution company is unable to grasp the secret the names of the shareholders, it is difficult to avoid the stock package purchased and the company has been usurped situation. It is precisely because there are certain disadvantages of bearer shares, and some countries do not allow issuance of such shares. UK companies may allow the issuance of bearer shares, but subject to strict control and management of the trading system, and many civil law countries Inc. shares are almost always by secret ballot form issued. Procedures for transfer and transfer of bearer shares is simple, convenient transaction, upon transfer of shares changed hands at once.
Bearer shares - Features
Bearer shares Ownership of bearer shares must be specifically characterized by possession of the stock itself, shareholders holding bearer shares prompted the need to keep the company's stock, shareholders of the message carefully. The advantage of issuing bearer shares is simple, easy to buy and transfer, the shortfall is that the transfer of bearer shares, by the shareholders after the shares delivered to the assignee of an assignment's effectiveness.
1, shareholder rights vested in holders of the stock Confirmed that the shareholders of bearer shares are not eligible for the name of a specific record based on, but in possession of the facts. Therefore, the person holding the stock is a shareholder, you can exercise the rights of shareholders. Because of this, in order to prevent counterfeiting, fraud and other acts of bearer shares of the publication of fine, its printing technology, color, paper, watermarks, numbers, etc. must meet stringent standards.
2, when the demands of shares fully paid Bearer shares is not recorded in the names of shareholders, if the shareholders pay part of the unit shall allow the granting of stock, after the fact will not be able to pay the reminder at the end of the stock models, so the subscription must be fully paid before receiving the stock.
3, the transfer is relatively simple Compared with the bearer shares, the transfer of bearer shares is more simple and convenient, as long as the original holders of the stock will be delivered to the assignee of the legal effect of an assignment, the assignee does not require the shareholders eligible to apply for transfer formalities.
4, safety less Because there is no record of shareholders, the name of the legal basis and, therefore, non-bearer shares, once lost, the original stock holders will lose their shareholder rights, and can not report the loss. The Company's shareholders is difficult to control, may lead to greater business risks. Shares issued to the public, can be registered shares, bearer shares can also.
Bearer shares - Transfer
How to transfer bearer shares?
With the transfer of bearer shares as compared to the transfer of bearer shares is relatively simple. Law in most countries, the transfer of bearer shares in a manner in accordance with the general rules of the transfer of bearer securities, so long as the holder of shares of stock were delivered to the payment later, the act that is legally effective, the assignee becomes a legitimate shareholder. "Company Law" also made a similar provision, namely, the transfer of bearer shares must be legally established securities trading sites, or else should be illegal transactions; equity holders of the stock after the delivery of legal effect, while the original holders will lose its corresponding of the shares and shareholder rights, shares of the transferee shall become the lawful holders of shares of the Company.
Bearer shares - the rights of shareholders
Shareholders according to the proportion of shares they hold have the following basic rights:
(1) The company's decision to participate. : Ordinary shareholders entitled to participate in general meeting of shareholders and has recommendatory powers, voting rights and the right to vote, you can also appoint a proxy to exercise his rights of shareholders.
(2) The profit distribution rights. : Ordinary shareholders have the right to get the distribution of profits from the company dividends. Common stock dividend is not fixed, by the company profit status and its distribution policy decisions. Common stock shareholders must obtain a fixed dividend preference shareholders are entitled to dividends only after the allocation of rights.
(3) stock options. : If the company needs to expand and the additional shares of common stock, the existing common stock shareholders are entitled to their equity ratio to below the market price of a particular priority in purchasing a certain number of newly issued shares, so as to maintain its ownership of enterprises the original ratio.
(4) the right of the remaining asset allocation. : When a company goes bankrupt or liquidation, if the company's assets are remaining after the repayment of debt, according to the first part of its remaining preferred shareholders, common shareholders after the distribution of the order.
