Shareholder Register
What Is a Shareholder Register?
A shareholder register is a rundown of active owners of a company's shares, refreshed on a continuous basis. The shareholder register expects that each current shareholder is recorded. The register incorporates every individual's name, address, and the number of shares owned. Likewise, the register can detail the holder's occupation and the price they paid for the shares.
The shareholder register is fundamental to the examination of the ownership of a company. Shareholder register is a term utilized in Europe and different parts of the world, while the term utilized in the U.S. is shareholder list.
How a Shareholder Register Works
A shareholder register must note all shares issued by a company. Moreover, it ought to detail any potential limitations on transferring shares, along with significant references, if accessible. For each share class, the register must likewise list shareholders by name, in sequential order, and each party's last known physical address.
Some shareholder registers venture to detail all issues of shares to every individual shareholder in the last 10 years, along with the date of all possible transfers of shares. This can likewise incorporate the name of the party to whom shares have been moved.
The shareholder register ought to incorporate the purchase prices of these shares, too. In the event that shares are not completely paid for, the register must note the unpaid amount.
Special Considerations
Extra critical parts of company record keeping incorporate a current and projected capital structure. This document, frequently in an Excel file, subtleties the financing of a company's current operations and future objectives for growth.
Wellsprings of funds can emerge out of giving equity (new shares of which would be noted in real-time in the shareholder register), and debt. Equity can be as common or preferred stock, while debt can be short-term or long-term in nature.
Requirements for a Shareholder Register
A shareholder register is a reasonable record of beneficial owners of shares — shareholders who are qualified for and may exercise voting rights connected to the shares, along with other specific rights and powers, and receive dividends.
Access is free for current shareholders and may require a small fee for non-shareholders. This will permit communication to, and between, shareholders of information, for example, the price per share in a takeover bid.
Per the rules illustrated by the Securities and Exchange Commission (SEC), a company must give shareholders the contact data of different shareholders in two cases. The first is proxy solicitations and the second is in a tender offer. A proxy solicitation contains information to be shipped off voting shareholders prior to a shareholder meeting. The solicitation could remember information about the company and the things for the plan that need a shareholder vote. A tender offer is a public offer or bid to purchase some or every one of the shares in a corporation.
The company can either mail the rundown to the mentioning party or send the materials straightforwardly to shareholders. In the mean time, companies might give access to the shareholder register per state laws or a company's by-laws and charter.
Features
- The shareholder list is utilized for several reasons, including taxation, mailing proxy materials, and dividend payments.
- Remembered for the register are the shareholder's name and physical address, while certain registers detail the last decade of shareholder transactions.
- A shareholder register is a rundown of active owners of a company's shares, refreshed on a continuous basis.
