Doing Away with Paper, State by State

In 2005, three U.S. states that still required companies to issue paper stock certificates - Delaware, Louisiana and Missouri - all enacted new laws allowing public companies incorporated in those states to issue uncertificated or "paperless" shares.

As a result, a number of public companies incorporated in these states have already indicated they are likely to discontinue issuing physical certificates and instead begin issuing all new shares electronically through the Direct Registration System.

The effective dates for the new laws in the three states:

• Aug. 1, 2005 - Delaware
• Aug. 15, 2005 - Louisiana
• Aug. 28, 2005 - Missouri

The only remaining U.S. jurisdictions that still require public companies incorporated there to issue paper stock certificates are Arizona and Puerto Rico. Here are links to the new state laws:

• Delaware- Delaware HB 150
• Louisiana - Louisiana HB 645
• Missouri - Missouri HB 678