EMPEA Guidelines

8. Stable and fair framework for property rights

A stable framework for property rights is pivotal to investment in privately held companies and assets, therefore investors seek a framework that provides: (i) an accessible and easily searchable means of (a) recording title to real property, mortgages, liens and other security interests and (b) obtaining basic information concerning local companies, (ii) a cost-effective means of transferring title to real property and shares in local companies and registering a security interest, and (iii) the protection of intellectual property rights.

 

Continue to 9. Flexibility in insolvency proceedings and fairness for stakeholders
Return to EMPEA Guidelines Overview


Supporting Material

 

In addition to a general acceptance of the legitimacy of the system of property rights at the highest levels of government, investors seek a framework that provides for complete and accurate information concerning property and securing title, including:

8.1 – Clarity of property rights and efficient and prompt property rights enforcement

  1. Clarity of property rights and of co-ownership/shareholders’ rights; and a degree of formality  that encourages legal clarity and reduces the scope for disputes (e.g., requirement of a written  instrument, or involvement of a notary);
  2. Enforcement of property and co-owners’/shareholders’ rights, which should be efficient,  prompt and cost-effective;

8.2 – Effective systems for property registration

  1. An effective system of property registration that is accessible and/or public, at a cost and in a  timescale that does not discourage transactions, and a similar system for providing basic  information concerning local companies, limited partnerships and other legal entities;
  2. Reasonable and transparent costs of registering/transferring property, including stamp duty,  registration fees and taxes;

8.3 – Security interests

  1. Clarity with respect to the rights of the holders of security and a degree of ease in enforcing  security interests; and
  2. The ability of an offshore lender to secure its loans using local collateral, and have the ability  to perfect and enforce that security interest in a manner that is equivalent to the means  afforded to domestic lenders.

8.4 – Intellectual property rights

  1. A stable and fair system of intellectual property rights that includes a high level of protection, efficiency of the registration process and an enforcement and dispute settlement mechanism for intellectual property;
  2. Signatory status of the country to the WTO TRIPs (Trade-Related aspects of Intellectual Property rights) agreement and national legislation for implementation¹; and,
  3. Signatory status of the country to the Patent Co-operation Treaty for Inventions, the Madrid system for trademarks and Hague system for industrial design.

 

¹ World Trade Organisation, Trade Related Aspects of Intellectual Property Rights (TRIPS)

 


Continue to 9. Flexibility in insolvency proceedings and fairness for stakeholders

Return to EMPEA Guidelines Overview