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Newsletter | Articles Bearer Shares are Alive and Well and Living in Several Countries The Organisation for Economic Co-operation and Development (OECD) is not a fan of bearer shares and brands any country that allows bearer shares as “uncooperative”. Luxembourg, the UK and Switzerland are OECD members and many major corporations still issue bearer shares, which are regularly traded. Another well-known OECD member nation is the United States, one of which, Nevada, allows bearer share corporations. Other less known jurisdictions which have retained bearer shares include the Marshall Islands, Uruguay and several other Latin American countries. Bearer shares are certificates which convey corporate ownership to whoever possesses them. They can be transferred by simply handing them to another person and the presumptive owner is the person in whose possession it is found. Depending on the jurisdiction where the company has been founded, bearer shares can be temporarily exchanged for voting shares at shareholder’s meetings. The person voting those shares may need to be identified, but in such cases the person will ordinarily be an attorney so the confidentiality of the beneficial owner of the shares is protected. One of the more interesting bearer share stories is the way in which the Marshall Islands was able to keep its bearer shares. The main registry for Marshall Islands non-resident companies is located a short distance west of Washington DC. The island’s Registry is privatised and is owned by a group of influential Americans. The founder was Edward Stettinius, US Secretary of State during the latter part of World War II. Consequently, it has survived and prospered while others have crashed and burned. Despite offshore centres eliminating or immobilising bearer shares, following OECD opinion, it seems slightly contrary that several of the OECD members continue to allow corporations to issue them from within their jurisdiction that have the ability to issue these bearer share instruments. Fore more information contact Stephen Colderwood.