Newsletter June 2017

Legal Updates

Bearer shares: The government decrees the end of bearer shares

As from 4 May 2017, companies are prevented from issuing new securities without first identifying their owner, and must include “number in the order, number of rights represented in the securities and, where applicable, aggregate nominal value”. Old titles will have to be converted into nominative shares. The companies will have a maximum term of 6 months to convert the securities into nominative shares.

The recent decree only defines deadlines and the Government will have a maximum period of four months to define the procedures to be adopted by the shareholders, meaning that if the Government effectively delays the procedures by four months, the owners risk having only two months to complete the whole process.

The recent law provides no further clarification and stakeholders are still awaiting further developments.


New urgent regulation of parental responsibilities

On May 24th, the Assembly of the Republic approved the Law 24/2017, promoting the urgent regulation of parental responsibilities in situations of violence in a family context. To that end, a new article is added to the Civil Code, which allows for the consideration that the exercise of parental responsibilities is contrary to the interests of the child when a coercive measure is decreed or an accessory penalty of prohibition of contacts between parents is established, or when the rights and safety of victims of domestic violence, abuse or sexual abuse is at stake.

This addition indicates that the court must, upon verification of the above situations, determine that the exercise of parental responsibilities will belong to only one of the parent exclusively. Also, within the scope of the General Regime of the Civil Protection Process, was also determined that it will be up to the Attorney General’s Office to request, in the short term, the introduction of the regulation process or change in the regulation of the exercise of parental responsibilities


Business Updates

Portugal is the third most peaceful country in the world

The Institute for Economics and Peace (IEP) highlighted Portugal as the third most peaceful country in the world, just after Iceland and New Zealand, which occupy the first and second place, respectively. Syria is considered, for the second consecutive year, as the least secure country.

In the case of Portugal, among the decisive criteria, the IEP mentioned the recovery of the economy as indicative of national stability.

Analysis of data from 163 countries showed improvements in 93 countries


Optimistic forecasts around the growth of the Portuguese economy for 2017

The portuguese President is feeling optimistic about the growth of the portuguese economy and expects a growth of 3,2%. While in Zagreb, talking amongst Croatian deputies, the President stated that if the economy grew by 2,8% in the first quarter compared with last year’s, and by 1% compared with the previous quarter, it can very well lead to a growth of 3,2% by the end of the year. The President also added that the public deficit may fall to an unprecedented 1,4% in 2017.

The European Comission also added that, after a strong evolution in 2016, it is expected that the economy will reinforce its rhythm. Following the strong comeback of the portuguese economy, the unemployment rate has been decreasing gradually, having drop from 17,5% in January 2013, to 9,8% as of April 2017, reaching pre-crisis levels.

Even before the EUROSTAT confirmed the Portuguese economy had grew by 2,8% in the first quarter of 2017, compared with last year’s, various entities had already reviewed their previous forecasts regarding the growth of the portuguese GDP in 2017. ISEG sees the portuguese economy growing between 2,4% and 2,8%, while Católica by 2,4%.