Panama is always trying to stay in the forefront as a provider of legal services. One law that has come about in recent times to help in this cause is Law 4 under the greater "Limited Responsibility for Societies Act (LTDS)". This law was passed on January 9th, 2009 and here are some of the positive ramifications:
• The working capital of a society derived from its contributions will be distributed proportionately. These contributions must be registered and accounted for in an official manner and it must be stated how these contributions will be distributed. A contribution can be money, goods or a type of service. The recording of contributions must also include the full names of the partners involved and exact dates when the contributions were entered.
• A "maximum value" on all types of contributions shall be set and and agreed upon by all partners of a society.
• "Limited Liability Societies" previously had to have a minimum working capital of $2000 and a maximum of $5000 to exist. The former law also stated that if it was determined (by the society) that the maximum limit of $5000 needed to be exceeded in order for the society to survive, the society would then have to transform itself legally into a company. With the new law there are no requirements for minimum or maximum capital.
• Allows a society to be formed with only a partial payment of contributions with the notation that "goods" and "services" need to be paid in full to be considered valid.
• The responsibilities of society directors and all society representatives can be carried out by any partner or third party designated by the society.
• The requirement to have one or more officers or authorized agent.
• "Participation Certificates" will be issued and signed by a society administrator and within these certificates the name of the society shall be entered as well as all authorized capital, registration data, the name of the partner holding the certificate plus the certificates value.
• A third party can be designated as a beneficiary of society profits as well as receiving liquidation/settlement benefits.
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