How to handle your corporate stock

If you are a foreigner living in Panama there is a strong likelihood that you own a corporation. This corporation may be used to hold a bank account, a house, or a car. You corporation comes with a piece of paper that says you own stock. What do you do with it?  

First of all what do you do when you have the stock certificates in hand? If you receive them blank you need to fill them out.All certificates need the following information: ·        Certificate Number ·        Name of the Corporation ·        Amount of Stocks it represents ·        The signature of the President of the Corporation ·        The signature of the Secretary of the Corporation ·        The date in which it was issuedNominal StockSecondly, there are stock certificates with the name of the owner written on them and there area “bearer” certificates.If your certificates are not to be “bearer” certificates you need to write the name of the owner on the certificates. These are called nominal stocks. They needed to be listed as part of your assets on your will. That includes certificate numbers, names, etc. You will then need to specify in your will who will receive these when you die.If you should sell these stock certificates the new owner needs to issue new certificates. You will endorse the certificates just like a check and there will be a contract specifying details of the sale.·        Name of the Owner of the Certificate (i.e. “bearer” or “to the bearer”) Bearer StockThese stocks say “To the Bearer” on the line that should identify the owner. These Certificates are easily transferred and there is no need to endorse them. Panamanian Law states that whoever “holds” these Certificates, is the owner of whatever they represent. So be very careful if you lose track of these they are no longer yours. Think “safety deposit box where you live.”

Make sure that your heirs know of the existence of these shares of stock, where they are, and how to get them. If you sell these certificates you may draft a contract but it not required by law.

Until another installment, be safe and be careful.

Sincerely,

The nice people at LEGALCORP.