The endowment fund of the Central Securities Depository Prague (CSD Prague), or the Central Depository Endowment Fund, enables both the holders of security accounts maintained under a CSD Prague participant (what are called classified accounts) and the holders of accounts that have not yet been registered under any CSD Prague participant (what are called unclassified accounts) to dispose of their securities they consider worthless, or the value of which is not known on the capital market, and for which they do not want to pay any fees.

Because Czech legislation does not give holders of dematerialised securities unequivocal certainty that they can abandon such securities, a transfer – usually in the form of a sale – remains the only way to dispose of securities. However, worthless securities are unlikely to find a potential buyer. Therefore, in order to enable the disposal of unwanted items, the Central Depository established the Central Depository Endowment Fund, to which securities can be donated.

The Central Depository assumes that the donations may include securities with residual value or that securities will increase in value thanks to their accumulation in the endowment fund. In such a case, the CSD Prague will attempt to sell the donated securities in a transparent manner via investment firms, and allocate the gains for projects to support educational, community and social programmes for young people, to offer help in the aftermath of natural disasters or to assist people in need. The fund’s resources are strictly earmarked and there is absolutely no risk of the CSD Prague profiting from these sales.

The donation of securities is possible on the basis of concluding a donation agreement. Such an agreement can be concluded by mail directly with the endowment fund if the owner has an account kept in what are called “unclassified records”. When concluding the agreement by mail, the donor will send (or deliver in person) two original copies of the agreement, one of which must bear an officially authenticated signature of the donor, to the address of the registered office of the endowment fund (Central Depository Endowment Fund, Rybná 14/682, 110 05 Prague 1). The donor may receive a copy of the agreement signed by the Endowment Fund by collecting it at the registered office of the Endowment Fund, by post by delivery to the address specified in the agreement or by email correspondence to the email address specified in the agreement.

The fee for the transfer of securities will be paid by the endowment fund itself. Therefore, the donor does not pay any fees.

On the basis of the conclusion of a donation agreement, it is also possible to donate securities at the branches of selected participants in the Central Depository which are authorised to represent the endowment fund, to specify model donation agreements and to sign agreements on behalf of the endowment fund. However, individual Central Depository participants may charge fees for their services in connection with the donation.

Donation Agreements to Download

Donation by mail without the involvement of a Central Depository participant:

Unaccepted Securities

Securities kept in what is called the CSD Prague Independent Register (mostly foreign securities whose ISIN does not start with CZ or CS) are also unacceptable.

Other restrictions on the object of the donation are stipulated by the donation agreement, especially Article II.

We further remind you that registered shares, which have limited transferability within the meaning of Section 270 et seq. of Act No. 90/2012 Coll., on Business Corporations, are transferable to the Central Depository Endowment Fund only after the submission of the issuer’s appropriate consent to their transfer to a representative of the Central Depository Endowment Fund.

Donation of Slovak Securities

The CSD Prague does not arrange the donation of Slovak securities to the National Property Fund of the Slovak Republic. However, the method for donating Slovak securities by mail is provided by the two companies listed below and the donation of securities is allowed only to natural persons. To ensure the transfer of securities to the National Property Fund of the Slovak Republic, a power of attorney with an officially authenticated signature and a copy of a current ID card is required. If the owner of the securities has already paid the management fee for the securities and requests its refund, they must provide their bank details, the full address of the bank, the bank’s SWIFT code, the IBAN and a copy of the owner’s account statement.

More information:

RM-S Market, o.c.p., a.s.
Nám. SNP 14, P.O.BOX 127, 810 00 Bratislava 1, Slovensko
tel.: +421 259 329 211, +421 259 329 317, +421 908 965 711
www.rmsfinport.sk

DLHOPIS, o.c.p, a.s.
Moskovská 15, 811 08 Bratislava, Slovensko
tel.: +421 250 529 515, bezplatná tel. linka ze SR: 0800 124 784
e-mail: info@dlhopisocp.skreklamacie@dlhopisocp.sk
www.dlhopisocp.sk