Stopping a Security


Involuntary dispossession of bearer securities

Placing a stop

The dispossessed holder (opponent) may notify the stop to the registering institution:

  • by officer’s writ
  • by registered letter
  • by a declaration made directly at the registering institution.

In case the stop is notified by registered letter, the corresponding application form [pdf - 636kb] has to be sent duly completed and signed by registered mail to the registering institution.

For each request, the opponent has to fill in an application form.

The opponent has to specify the correct address of the domicile elected in Luxembourg if he is not a resident of the Grand Duchy of Luxembourg.

An invoice for the stop application fee is sent to the address of the opponent. The stop is published after payment of the invoice.

Elected domicile

If the opponent is not a resident of the Grand Duchy of Luxembourg, he has to elect a domicile in Luxembourg for the sole purpose of this procedure.

This can be made, for example:

  • with a private person who agrees thereto
  • with a bank authorizing the election of the domicile and the name of a contact person
  • or with a bailiff.

Petitioner

The petitioner can be a banker, a lawyer, … who notifies the stop on behalf of his client and who may sign the document in his quality as petitioner.

Fees (for the publication of a stop)

In accordance with the ministerial order of 1 December 2008 determining the fee schedule for stop applications placed in connection with the involuntary dispossession of bearer securities the fees amount to:

 

EUR

15.00

per security

Minimum

EUR

300.00

 

Maximum

EUR

500.00

 


For example, if the stop mentions a number of securities not exceeding 20 securities per request, you have to pay the minimum of EUR 300.-

If you have more than 20 securities per request to place a stop on, you have to calculate the amount by multiplying the number of securities by EUR 15.00.-.
The maximum payable fee per request is EUR 500.-.

Payment of the fee can be made:

  • by bank transfer to an account of the Luxembourg Stock Exchange (for more details contact the registering institution)
  • by cheque (you have to add EUR 10. - for cashing fees)
  • by credit card (AMEX, VISA or MASTERCARD)

The fee has to be paid in advance of the publication

After the stop is published

The following effects will arise from the first day following the publication by display of the stop:

a) Nullity towards the opponent of any trade in security

b) Non-opposability vis-à-vis the opponent of any payment made in respect of the security by the issuer or the financial agents of the security, such as payments of capital or interest and dividends which have fallen or will fall due, payments in kind or other payments

c) Suspension of the time limit in respect of any payment to the benefit of the opponent.

 

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Contact

Registering Institution of Stops on Bearer Securities
Société de la Bourse de Luxembourg S.A.
35A Boulevard Joseph II
B.P.165
L-2011 Luxembourg

Tel: +352 47 79 36 259
Fax: +352 47 79 36 332
oppositions@bourse.lu

Opening Hours

Monday to Friday
9:00 – 12:00 am

The registering institution is open on the working days of the Luxembourg Stock Exchange

 

Forms

Brochure