Private Umbrella Fund in DR?

Hola,Frederic!

You have a very good site, so I hope to receive a friendly answering for some questions.

Is it possible to register in the DR a private fund (or an investment partnership), which will issue a preffered stocks ( including a bearer ones) for private investors (as a BVI Private Funds)? Do you have a stock exchange in the DR and if you are not, were are a stocks of DR public companies trading? Are the DR investers active in international portfolio investments, outside the USA, and could you, please, recomend me someboby who is involved in such operations (not for sales just for discutions)?

Best regards!

George.

Yes you can register a private find as a corporation and issue preffered shares, but not as a Trust, nor issue bearer shares (owner of the shares have register in the company's shareholder registry.

Yes, we have a 8 year old securities exchange (I am one of its founders), but so far only commercial paper (debt papers) are traded, because companies are traditionaly family owned and are not to crazy about transparency.

Dominicans have close to 8,000,000,000 dollars invested in CDs in US Banks, and more than 1,500,000,000 dollars in stocks, bonds and real estate, according to U.S. Government sources.

Sorry for delay, Frederic!

Thanks a lot for the information. And if it is possible - one more question. Did I right understud that a DR corporation can issue a preffered shares of a different clases ( as an Umbrella Funds)?

Best regards!

George.

YES. But I suggest you seek the advice of one of the local stock brokers to fill you in on the details of HOW to do it right.

Thanks a lot, Frederic!
This is a good news for me and my partners. Currently we are not looking the ways to rise money, so we just need off-shore IBC which will be well structured (as a Private Umbrella Fund) and useful for future development in an international investment activity. In this case we study a different legislations.
Could you please recommend me a laywer who is specializing in IBC formation in the DR and who could help to open banking account in a strong international bank in the DR.

It is very nice to meet you and thanks again!

George.

OK. But I would need that you send me a more detailed description of what you need done to my email: frederic@tricom.net so I can think about who could be the best 3-4 law firms to respond to your needs.

(My list of local law firms is extensive and all have certain especialities they are the best at --- if I simply forward your email to all of them, they will probably all respond positively and increase your risk of not selecting the best firm for the task.

After some emails exchanged with one of our forum participants I beleive that the following clarification needs to be made:

The DR Commercial Code regulates the issues of shares.

You can issue different types of shares:

1.- "nominative" shares, which carry the shareholder’s name and
its transfer must be registered in the company's registry books;

2.- "order" shares, which are transferred by endorsing the share certificate, and

3.- "bearer" shares, which can be transferred hand to hand. (But are not exactly like bearer shares in the U.S., since there are some subtle differences, in the sense that even though the name will not appear in the certificate, it will appear in the company's registry; and unless a new shareholder notifies and documents the issuing company that s/he has bought the shares, the company will only be obligated to recognize the person whose name is in its share stub in its shareholders registry book).