This analysis reveals obstacles in handling abandoned shares during public to private company transitions, suggesting regulatory reforms.
Key Points
The absence of regulations on abandoned shares impedes reaching the General Meeting of Shareholders quorum, delaying the privatization process.
Interviews with notaries and capital market practitioners indicate significant challenges related to unregulated stranded shares impacting shareholder rights.
A normative and empirical juridical approach was utilized to explore the legal instruments and practical implications of abandoned shares.
Legal uncertainty from stranded shares can hinder corporate restructuring, emphasizing the need for comprehensive regulatory revisions.