State Act

Code of Comunidades of 1961

Art. 424 – The seizure or attachment of shares shall be effected in the administration office, after satisfying that as per the catalogue and the book of annotation, that the respective share certificates are annotated in favour of the person appointed or one authorized by him and which are there charges which burden on them writing the result in the respective record which shall also be signed by the secretary of the administration or his substitute. § 1. In order to effect the attachment in the execution in cases which are pending in the office itself, there is no need of separate warrant. §2. The shares that are issued or carried in the names of other than those indicated as per the writ or warrant shall not be seized or attached. §3. The clerk who effect the attachment or seizure shall remit to the administration office a copy of the respective record, making a necessary note of presentation so that on the base of the same a competent annotation is made. §4. When the seizure is made in pursuance of suits filed in the administration itself, the registration shall be made based on the original report. §5. The clerk of the comunidade or the respective official attaching or seizing the shares shall notify the holder of the certificates of the shares attached or seized, to surrender them in the administration office, within eight days, failing which he shall be liable to be prosecuted for disobedience and thereafter the necessary note shall be made and kept in deposit at the administration office. § 6. When, the shareholder, after the notification referred to in the preceding paragraph, declares that the respective shares are pledged in safe treasury or are in private hands, the administrator shall, in the first case, request the competent entities to forward the respective certificates within eight days and in the latter case, he shall order the issue of the notification to the creditor to surrender the same shares within the same period, to enable to make the necessary note of attachment or seizure of those certificates. The shares thereafter shall remain in deposit in the administration office. §7. If, after seized or attached, those shares are presented in the administration office for any registration, they shall be retained and the necessary note of attachment or seizure shall immediately be made on them (model No. 20). §8. After the annotation of seizure or attachment is made the administrator shall order the clerk of the respective comunidade to retain its dividends in the safe at the disposal of the person who determined the attachment, when this is the case. §9. Once the seizure or attachment is cancelled as result of a judgement or administrative order or on account of the satisfaction of the executive proceedings in the administration office itself, the dividends accrued and accumulated in the safe shall be free to the holder of the seized or attached shares, if nothing is mentioned as regards them in the order or final judgement. §10. If the holder of certificate of shares fails to surrender the same in pursuance to the notification prescribed in paragraphs 5 and 6, and fails to justify its loss or existence in the hands of another person, the administrator shall prepare a report and forward it to the Public Prosecutor in order to impose the penalty to such a possessor for disobedience. He shall consider such certificates cancelled and issue a new ones in the form provided for in No. 2 of article 436.