A registered share is a share issued in the owner’s name. If the owner later sells the share, the new owner must register it in their name. … If someone owns a registered share, they’re referred to as a registered shareholder. They’ll have their name and address recorded on the company’s share registry.
The shareholder register serves as proof of ownership in the company, and it shows the number of shareholders in each class of shares. Companies use the shareholder register to keep track of shares held by shareholders and contact them directly instead of going through a custodian bank.
Related Content. A holder of shares or debt obligations registered on the books of the issuer. See also, beneficial owner and entitlement holder.
All normal trading conditions that apply to any trade must be met. Sales of more than 5,000 shares or more than $50,000 worth of shares must be preregistered with the SEC.
According to rule 5(2), the registers are required to be maintained at the registered office of the company.
Direct registration allows you to have your security registered in your name on the books of the issuer without the need for a physical certificate to serve as evidence of your ownership.
Updated on a regular basis by the company owner or director, the shareholder register includes details of shareholders, such as their name, address, how many shares they own, what class, the price paid, when they became a member and when they ceased to be a member.
A share registry is an organisation which works on behalf of the listed company and amongst other things records any changes in share ownership, issues shareholding statements and manages dividend payments.
Contact the brokerage firm holding the stock and ask the broker to transfer the ownership of the stock to direct registration. Certificated shares purchased through an online process are generally held in street name registration.
What if company is not registered?
A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law.
What is the benefit of registered company?
It has a wider legal capacity, as a company can own its property and incur debts, by these the individual company members owe no liability towards the company’s creditors for debts.