Law 20,954 was published in the Official Gazette on October 29 2016. It amends the Corporations Act in Law 18,046. The amendment provides that custodians of shares in public companies that hold shares on behalf of other parties must provide the Securities and Insurance Commission with the identity of those parties, including:
- their names;
- their identity card numbers;
- the name of the issuing companies; and
- any additional data that will help to identify the issuer and the respective shares.
Banks that act as custodians must report this information to the Superintendence of Banks and Financial Institutions.
If custodians do not possess this information, they must publish a notice in the Official Gazette and a national newspaper (with no more than 10 days between each) each May informing the shareholders that they must claim ownership of the shares within five years from the date of the final notice's publication. The notice must clarify:
- the shares;
- the issuer;
- the custodian;
- the term for which the shares have been in custody; and
- any other available relevant data.
If the five-year period expires without any claim of ownership, the custodian must sell the shares and keep the funds for one year. These funds will accrue legal interest and be adjusted by inflation. If the one-year period expires, the custodian must hand over the funds (and any dividends that the shares may have accrued while being held by the custodian) to the national firefighters' association.
For further information on this topic please contact Santiago Montt Vicuña at Montt y Cia SA by telephone (+56 22 233 8266) or email ([email protected]). The Montt y Cia SA website can be accessed at www.monttgroup.com.