STSM061050 | Bearer Instruments: introduction:2015 changes

On 26 May 2015, section 84 of the Small Business, Enterprise and Employment Act 2015 came into force.

This amended section 779 Companies Act 2006 (by adding section 779(4) CA2006) and prohibited UK companies from issuing any further bearer shares on or after 26 May 2015.

In addition, Schedule 4 required all existing bearer shares to be surrendered and either converted into registered shares, or cancelled within 9 months of section 84 coming into force.

Following the 2015 changes, in practice therefore the scope of the charge on bearer instruments was greatly reduced, with the charge remaining only on the transfer on sale of bearer shares issued by or on behalf of non-UK companies, if the transfer occurs in the UK. It may also apply on the transfer of certain bearer debt securities.