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The Netherlands

Houthoff Buruma Amsterdam

On November 1 1999 the Dutch Act on the Replacement of Securities was abolished. The Act gave holders of bearer securities the possibility to obtain duplicates of their securities in the event that the certificate was lost or damaged. Since most bearer securities are no longer kept in physical form by investors themselves, but on their behalf by custodians, the Dutch legislator decided that there was no longer a real need for the Act. Instead, a new provision has been inserted in the Civil Code setting out the steps that must be followed in the event of loss of bearer share certificates. These include publication of the request for replacement and a court decision in case of dispute.

The new provision only applies to bearer certificates for shares, whereas the old Act also applied to other instruments such as bearer bonds and option certificates. There is now no law in effect in the Netherlands governing the loss of bearer bonds and similar instruments, and the rights of the holders of such instruments will depend on the relevant provisions (if any) in the documentation pursuant to which the instruments were issued.

Daan Lunsingh Scheurleer

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