One of the effects of the Small Business, Enterprise and Employment Act 2015 was the prohibition of the creation of bearer shares. This prohibition took effect from 25 May 2015 and a nine-month transitional period was granted to give companies sufficient time to arrange for the transfer of their bearer shares into registered shares. Upon the expiry of this nine-month period on 26 February 2016, a court application to cancel the remaining bearer shares must be made within three months.
This final three-month deadline expires on 26 May 2016 and companies who have not yet made a Court application to cancel any outstanding bearer share warrants are advised to do so without further delay.
Failure to make the application and provide the requisite notice to the bearer shareholders will constitute an offence by the company and its officers.
Bearer shares must be converted into registered shares