All About Shareholder Register

Every minute, the stock market sees millions of shares of companies being bought and sold. Every trade results in a change in the ownership of shares. The listed companies must maintain a list listing all the shareholders of their shares, even in such tight circumstances. This is called the shareholder register. It is updated regularly and is also known as the shareholder list. Continue reading to learn more about the shareholder registry and its contents.

What's a shareholder list?

The shareholder register, as you know, is a list of current owners that identifies who owns a company. The register contains names of people who previously owned shares in the company, as well as the active owners.

Every company that is registered under the Companies Act must maintain a shareholder register. Companies that have their shares listed on stock exchanges are also included in this list. The Companies Act provides that the shareholder register can be inspected both by investors and regular citizens.

The owners of shares change every day within a listed company so the entity updates the shareholder register every day. Investors can request the register at the end of each day when they wish to inspect it.

What information should a shareholder registry include?

Let's take a look at some of its information now that we have a better understanding of the definition of shareholder register.

1. The address and name of the shareholder.

2. The date that the shareholder became a member.

3. The number of shares owned by the shareholder.

4. The shareholder's share certificate number or folio number.

The company must update this information if there is any change. These details are not the only ones that the register contains.

1. The number of shares that were issued to the public.

2. The type of shares (equity, preference) that are issued to the public.

3. The date of issuance for the class of shares.

4. The status of the shares (whether they are paid or not).

Is the shareholder register available?

The registered office address of a company usually houses the shareholder register. The register can be found at any other location of the company's choosing. To do this, the company must apply for approval from the Registrar of Companies and give a reason.

Anyone wishing to inspect the shareholders register must do so at the company's premises. It is prohibited to move the register from the premises. Investors can request a copy of a register at a specific date, and the company will mail it to them.

What happens if a company doesn't properly maintain a shareholder registry?

The shareholder register, as you probably know, is required by law. The company can be punished under the applicable laws if it is found to be in violation of the requirements for maintaining the shareholder register.

How can a listed company keep a shareholder list?

Maintaining a shareholder list is difficult because the owners of shares in a listed company can change frequently. This is why listed companies tend to outsource maintenance of these registers to dedicated share transfer agents (RTA) and registrars.

An RTA can be employed by a listed company either permanently or for a short time. This agent acts as an intermediary between investors and the company. The RTA is responsible to transfer shares and maintain records such as the maintenance and updating of the shareholder registry.

A dedicated agent for share transfer can help a listed company save time and money.

Conclusion

As you know, every company must maintain a shareholder register. It is an integral part of regulatory compliance and contravening any provisions could result in unnecessary penalties or fines.