To purchase shares, you need to hold a securities account with your bank or another financial intermediary. By going about it in this way, you will hold shares in « bearer » form. Two other methods for holding shares are possible : Managed registered shares and directly registered shares. We invite you to look particularly at the directly registered shares which offer many advantages.

• Bearer shares, registered shares : what difference ?

  • Since 1984, French shares have been "dematerialised", i.e. they are recorded electronically in a securities account and are no longer evidenced by a hard copy certificate. Securities may be held in two forms:

    • 1. Bearer shares: when the name of the owner is not disclosed to the issuing company. However, they are not anonymous since they appear in the account managed by the financial intermediary.
    • 2. Registered shares: when the name of the shareholder appears in the books kept by the issuing company, which makes it easier for the company to communicate with its shareholders. These shares may be in either of two forms:
    • • "Managed registered" shares: Management of the securities account is entrusted to a financial intermediary. The financial intermediary charges for this service.
    • • "Directly registered": The securities are entered directly and solely in the books of the issuing company, which is in charge of the administrative management of the shares (usually via its authorised agent).
• Advantages and disadvantages of each of the methods for holding shares

  • 	Advantages	Disadvantages
    Bearer shares	- Trading on the stock market is "easy" and immediate - Freedom of choice of financial intermediary - Simplified portfolio management (possibility of grouping together all securities)	- Payment of custody fees - No systematic communication by the issuing company - Need to obtain a certificate for attendance at shareholders' meetings
    Managed registered shares	- Freedom of choice of financial intermediary - Simplified portfolio management (possibility of grouping together all securities) - The issuing company regularly sends various corporate communications, and notice of shareholders' meeting	- Payment of custody fees (these may be increased) - Possibility of longer operational times being required due to the complexity of circulation of information media (statement of registered references - bordereau de références nominatives - BRN) between the issuing company, Euroclear and the custodian
    Directly registered shares	- No custody fees are payable - No transfer fee from bearer shares to directly registered shares (L'Oréal will meet the cost up to a maximum of 50 euros, on presentation of the corresponding receipt). - The company regularly sends various corporate communications, as well as notice of shareholders' meetings - Preferential brokerage rate	- Impossibility of having only one securities account in the event of simultaneous management of several securities

    
    
• Six good reasons to choose directly registered chares

  • By becoming a shareholder holding directly registered shares, you will be registered in the company and will benefit from the following advantages:

    • 1. Comprehensive and personalised information (Shareholder Digest and Letter to Shareholders) sent directly to you,
      
    • 2. No custodian fees or management fees for routine transactions, and preferential brokerage rate,
    • 3. Sending of your updated account statement with the possibility of consulting your statement, and issuing orders, on the secure website GISnomi, dedicated to directly registered shareholders: www.gisnomi.bnpparibas.com. Your confidential access codes are sent to you by BNP Paribas Securities Services once your shares have been directly registered,
    • 4. Simpler access to the Annual General Meeting: the notice to attend is sent directly to the shareholder, with the possibility of voting via the Internet on the dedicated secure website: www.gisproxy.bnpparibas.com,
    • 5. Dividend sent by cheque to the home address, or credited to the shareholder's account, immediately and free of charge,
    • 6. No transfer fee from bearer shares to directly registered shares (L'Oréal will meet the cost up to a maximum of 50 euros, on presentation of the corresponding receipt).
      
      
      • • Transfer your shares: download a standard form of registering letter (in French)
      • • Purchase or sell L'Oréal shares: download the contract for stock market services
      • • Confirm a trade order placed by telephone: download a model of such document (to be sent within 48 hours)