Back To: BUSINESS ENTITIES, CORPORATE GOVERNANCE, & OWNERSHIP

What is the Shareholder Register?

A shareholder register is a record of the company's shareholders who currently own shares in the company. In other words, it is a record containing a list of active company owners. The company creates the first register at the same time as its founding time. According to the law, the company has to keep updating the list regularly.

How is a Shareholder Register Used?

The shareholder register allows the corporation, the shareholders, and the public to know the company's ownership structure. The register contains vital information about the company's shareholders.

What does a Shareholder Register Contain?

In a shareholder register you find the following information:

• The number, and price of each share presented in a sequence format
• The name, corporate identity number, personal identity number, postal address, and any other identification that the shareholder has
• The shareholders occupation and income/salary
• If the company has many shares in different classes, then the register should record the shareholders share class
• Certificates of the shares
• Information about any reservations for the shares that a shareholder makes
• Dates of any transfers of shares, and the receiving parties
• Restrictions for sharing or transferring shares, and
• Dates of issuing shares to the shareholders

Special considerations for a shareholder register

The current and projected structure of the company's capital is the additional components that the register should include. The excel document provides financing details of the company's present operations and objectives for its growth in the future. The company can source its funds from the issuance of equity (preferred or common stock), and debt collections. The debt can be either short-term or long-term.

The Maintenance of a Shareholder Register

The board of directors in the company has the main responsibility of maintaining shareholder registers. Meaning, the board of directors should not assign any of their duties about the register to any other officer in the company. Sometimes the board can assign the preparation of the register to the managing director of the company. However, in such cases, the board is fully responsible and should ensure that they administer the register properly. In other cases, the marking in the register may not be clear. The board will hold a meeting to make decisions on the register notation. The board of directors should also ensure that they pay the transfer funds and present payment evidence to the company. Failure to pay the taxes is punishable by law as a violation and often results in loss of property. According to the law, register maintenance should be in a consistent manner. The board can decide to use manual ways of recording information or automatic ways. A shareholder must share any changes to his/her information so that the company can make necessary updates. When using manual records, the board should ensure any updates are printed out. A shareholder can use his/her rights after inclusion in the register, or after he/she announces that he is part of the company owners. He/ she should provide proof to support the statements. Some rights that the shareholders' exercise does not require share ownership registration. The rights include payments of dividends alongside the share certificate. People owning shares together can only use shareholder rights through a joint representative.

Conclusion

In the Swedish Companies Act, the shareholder register is a document that can be accessed by the public. Therefore, it needs to be available at all times in the company for inspection. Every shareholder has the right to inspect it and get a copy if they want to. New publications of the document come in four times a year

Related Topics

• Corporate Governance Law (Intro)
• What is Business Governance?
• Berle-Means Thesis 
• Corporate Governance Rating Definition
• Who are the members of a corporation?
• Corporate Charter
• Shareholder Register
• Common Stock
• Preferred Stock
• Par Value
• Authorized Shares
• Issued Shares of Stock
• Unissued Shares of Stock
• Outstanding Shares
• Institutional Shares
• Dual Class Shares
• What is a closely-held corporation?
• Close Corporation Plan Definition
• What is a Private Company vs a Public Company?
• What is the role and purpose of the corporation?
• What is the Agency theory of corporate governance?
• Shareholder-Centric Perspective
• Shareholder Value
• What is the Stakeholder theory of corporate governance?
  
• What is the role & rights of Shareholders in the corporation?
  
• Shareholder Democracy Definition
• Quorum Definition
• Information Circular
• Straight and Cumulative Voting
• Statutory (Straight)
  
• Cumulative Voting
• Plurality Voting
• Class Voting Shareholders
• Changing the Voting Rules
• Supermajority (Voting)
• Shareholder Sponsored Proposal 
• What are the variations on attributes of Ownership structure?
• Stock Split
• What are the fiduciary duties owed by shareholders?
• When is a shareholder personally liable for corporate obligations?
• Appraisal Rights
• Dissenter's Rights
• Say on Pay Rights
• How can shareholder enforce their rights (direct and derivative actions)?
• Amotion
• What is the process for bringing a Derivative action?
• What are corporate vote Proxies?
• Proxy Statement
• Proxy Fight or Contest Definition & Explanation 
• What is Shareholder Activism and the significance of Institutional Investors?
• Activist Investor
• Overview of Board of Directors
• Board Decision Making
• Advisory Board (Observer Directors)
• What is the role of the Board of Directors?
• Board of Trustees
• Board of Governors
• What is the composition of the board of directors?
• Chairman of the Board
• CEO as Chairman of the Board
• Inside Director
  
• Outside Director
• Outside Director or Non-Executive Director Definition
• Independent Outside Director
• Budget Committee
• Audit Committee
• Compensation Committee
• Nomination Committee (Corporate Board)
• What standards govern the actions of the board of directors?
• Duty of Candor Definition
• Duty of Care (Board of Directors)
• Duty of Loyalty (Directors) 
• Self-Dealing
• Board Evaluation Definition
• What is the Business Judgment Rule?
• What is D&O insurance?
• Codetermination (Foreign)
• What is the role of Managers of the corporation?
• What standards govern manager actions?
• Chief Executive Officer (CEO)
• Chief Financial Officer
• Chief Information Officer (CIO)
• Chief Investment Officer (CIO)
• Chief Legal Officer
• Chief Operating Officer
• Chief Risk Officer
• Chief Security Officer
• Chief Technology Officer (CTO)
• What are the primary state and federal corporate governance laws?
• What is the role of the state in corporate governance?
• What is the role of Securities Laws in corporate governance?
• What is the role of the Foreign Corrupt Practices Act in corporate governance?
• What is the Sarbanes-Oxley Act (SOX) effect on corporate governance?
• Sarbanes-Oxley Act (SOX)
• What is the Dodd-Frank Wall Street Reform and Consumer Protection Act effect on corporate governance?
• Corporate Monitors
• What industry organization standards affect corporate governance?
• How do proxy advisory firms affect corporate governance?
• What is the role of ethics in corporate governance?
• What are the major causes of corporate governance issues?
• What are the access to information issues?
• What are decision-making structure issues?
• What are the power struggle or competition issues?
• Holding Company
• What are hostile takeovers and defenses to hostile takeovers?
• Williams Act
• Staggered Board
• Shark Repellent Defenses?
• Poison Pill Defenses?
• Flip Over Poison Pill Definition
• Flip In Poison Pill Definition
  
• Voting Poison Pill Plan
• Delay-Tactic Defenses?
• Legal Lockup Defenses?
• White Knight and Pac Man Defenses?
• Jonestown Defense
• Lady Macbeth Strategy
• Macaroni Defense
• Yellow Knight
• Back-end Plan Definition
• Backflip Takeover Definition
• Dead Hand Provision Definition
• Kamikaze Defense
• Operating Company Property Company Model
• Whitemail
• Scorched Earth Policy Definition
• Revlon Rule
• What are benefit-alignment issues?
• Cadbury Rules Definition