May 19 2025 |
What is a Shareholder Register?
Part of your company documentation , a shareholder register is a list of individuals and or corporate entities that own your company’s shares. It lists each holder of an equity interest in the company along with their important details; for example:
- Name
- Address
- Contact details
- Shares held
- Amount paid to acquire the shares
- Date of first entry to the register
- Capital calls outstanding
- Dividend payments owing
A shareholder register is also called a Capitalization Table, or Cap Table, if your company is a start-up or an early-stage venture.
How to create a shareholder register
Your shareholder register should include:
- The name and contact details of shareholders
- The number and category of shares held by respective shareholders
- The amount paid to acquire the shares
- Important dates, such as purchase of shares, cancellation of shares and transfer of shares
The shareholder register contains information required as per the by-laws of your company, local as well as potentially offshore jurisdictions. It is considered a proprietary document, accessible only to certified employees of your company, other shareholders, or third-party vendors who manage the register.
Why are Shareholder Registers important for business today?
Having an up-to-date shareholder register provides benefits for your company including:
- The ability to track the number, owners and value of the total shares issued
- The ability to monitor share splits, consolidations, redemptions, cancellations, conversions and issuance of new shares
- The ability to provide an accurate picture of the company in formal presentations
- The ability to meet regulatory requirements for disclosing information about your company’s ownership
Why are Shareholder Register important for an event tomorrow?
A compliant and updated shareholder register is key for your company, especially while conducting transactions with other businesses because it:
- Acts as a go-to document providing information on the current status of share ownership
- Accelerates decision-making for various events, such as new investments, by assessing information on availability and value of shares
- Provides a rational valuation of your company in a concise document, which is essential for investments
Pros of addressing Shareholder Register
- Accelerates decision-making for transactions
- Ensures regulatory compliance and prevents legal penalties
- Provides transparency for the tracking of share ownership and transfer
Cons of not addressing this topic
- Leads to delays in deal closures due to the lack or absence of share ownership information
- Makes it difficult to track share ownership, transfer or equity scenarios in the case of management changes or M&A
- Adds significant compliance and regulatory burdens
FAQ
Who keeps a shareholder register?
A shareholder register, also known as a stock register or share register, is typically maintained by the company or its designated transfer agent. The responsibility for keeping a shareholder register lies with the company itself or an authorized third-party registrar or transfer agent appointed by the company.
Who can access a share register?
Access to a share register is typically restricted to authorized individuals or entities, such as:
- Company officials
- Shareholders
- Regulatory authorities
- Legal professionals
What is the difference between a shareholder register and a ledger?
The main difference between the two is that the shareholder register specifically focuses on maintaining a list of shareholders and their details, while a ledger refers to a broader record-keeping system. The shareholder register is a component of the overall ledger system.
Who maintains the register of shareholders?
The register of shareholders is typically maintained by the company itself or by a registrar or transfer agent appointed by the company. Some companies choose to outsource the maintenance of the shareholder register to a professional registrar or transfer agent who specializes in managing shareholder records and related services.
How do you prove you are a shareholder?
To prove that you are a shareholder, you typically need to provide relevant documentation or information that confirms your ownership of shares in a company. The specific requirements may vary depending on the jurisdiction and the company's policies, but here are some common methods to prove your shareholder status:
- Shareholder certificate
- Brokerage or custodial statements
- Shareholder register or database
- Transaction records
- Proof of dividend payments
LEARN MORE ABOUT COMPANY DOCUMENTATION
- Shareholder Agreements
- Shareholder Meetings
- Company Correspondence with Shareholders
- Market Assessment
- Company Constitution
- Board Documents
