|
Accounting Means and Brokerage Updates in Panama Corporation and Trust Law |
|
|
Through the Law Decree 5 of 1997, the Executive Branch of the Panamanian government introduced modifications to its Commercial Code as well as Law 1 on Trusts. These changes deal with improvements to record-keeping in Panamanian business associations, more flexibility regarding Panamanian companies and trusts' procedures and records and updating provisions dealing with brokerage and pledges. Panamanian Corporate Law has not been the recipient of any reforms since 1927.
The section on Accounting Books in Law Decree 5 make provision for electronic or other authorized means of keeping corporate, minutes and share registries, as long as these may be printed out. Merchants may also keep accounting books not only in ledgers, but also through these electronic means. The same provisions for corporate books apply. Merchants may also conduct their accounting books in the number, or class or manner in a way the merchant decides fit for as long as this complies with Panamanian accounting procedures. Nominee directors or others entrusted with juridical powers dealing with offshore operations can keep their required books (accounting and company) outside the Republic of Panama.
The Brokerage Provisions in the Law Decree now update brokerage contracts to be subject to local custom, practice and law. It also states that single or global shares certificates can be represented by forms permitted in securities practice such as documents, account entries or some other mechanical, magnetic or electronic means that validates their truthfulness. Sales of same are now regulated by commissions, and the National Securities Commission now requires previous consent for all foreign securities offer from Panama or within it. It also now allows only authorized stock sellers to act as representatives in stock exchanges.
This section also states that usury restrictions do not apply to operations performed outside Panama neither do the maximum annual interest rates levied on local operations.
|
|
Secure Order
Sales
