Share Register

Definition

A Share Register (also known as a Register of Members) is an official document maintained by a corporation listing the names, addresses, and details of the ownership of the company’s shares. This register is essential for companies to manage and keep track of all shareholders who hold shares directly within the organization. The register may also record the date of share issuance, types of shares, and any changes made over time, such as transfers of ownership.

Examples

Publicly Traded Companies: For a company listed on a stock exchange, the share register will include thousands of entries and will be frequently updated to account for share transactions.
Private Companies: A closely-held corporation may have a simplified share register, with fewer shareholders and less frequent changes in share ownership.
Annual General Meeting (AGM): During an AGM, the share register is often scrutinized to ensure voting rights and dividends are correctly distributed among shareholders.
Mergers and Acquisitions: In the case of a corporate merger, the share register is crucial for verifying the ownership rights of shareholders receiving new shares in the merged entity.

Frequently Asked Questions (FAQs)

Who is responsible for maintaining the share register?
- The company’s registrar or a dedicated corporate secretary is typically responsible for maintaining the share register.
Is the share register publicly available?
- For publicly traded companies, certain information from the share register may be available to the public. For private companies, access is typically restricted to the company and its shareholders.
Can a shareholder request changes to the share register?
- Yes, shareholders can request changes, such as updating their address or transferring their shares, which the company must record in the share register.
What information is included in a share register?
- Details such as the shareholder’s name, address, the number of shares held, the type of shares, and the dates of ownership changes are included.
Why is a share register important?
- It is crucial for corporate governance and ensures accurate record-keeping for dividend distribution, voting rights, and regulatory compliance.

Stock Certificate: A physical document that certifies ownership of a specific number of shares in a company.
Shareholder: An individual or entity that owns shares in a corporation.
Dividend: A portion of a company’s earnings distributed to shareholders.
Annual General Meeting (AGM): A yearly gathering of a company’s interested shareholders to discuss the company’s performance and elect the board of directors.
Equity: The value of an owner’s interest in a company, represented by shares of stock.

Online References

Suggested Books for Further Studies

“Accounting for Dummies” by John A. Tracy
- This is a great starting point for understanding the basics of accounting and share registers.
“The Essentials of Corporate Law and Governance” by John W. Hendrickson
- This book dives deep into the legal and governance aspects, including maintaining share registers.
“Financial Accounting: Tools for Business Decision Making” by Paul D. Kimmel, Jerry J. Weygandt, and Donald E. Kieso
- This comprehensive guide offers insights into financial accounting practices, including the role of share registers.
“Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
- A detailed textbook covering various aspects of accounting practices essential for understanding corporate records and share registers.

### Who typically maintains the share register for a corporation? - [ ] The CEO - [ ] Shareholders - [x] The company's registrar or corporate secretary - [ ] The marketing department > **Explanation:** The responsibility of maintaining the share register usually falls upon the company's registrar or corporate secretary. ### What kind of information is NOT typically recorded in a share register? - [ ] Name of the shareholder - [ ] Address of the shareholder - [x] Financial statements of the shareholder - [ ] Number of shares held > **Explanation:** While the share register includes the names, addresses, and number of shares held by each shareholder, it does not include personal financial statements of the shareholders. ### How often is a share register updated in a publicly traded company? - [ ] Once a year - [ ] Once a month - [x] Frequently, as shares are traded daily - [ ] Never > **Explanation:** The share register for a publicly traded company is updated frequently to reflect daily trading and changes in share ownership. ### Who can request changes to a share register? - [x] Shareholders - [ ] Employees - [ ] Competitors - [ ] Customers > **Explanation:** Shareholders are the primary individuals who can request changes to a share register, such as updating their contact information or transferring shares. ### Are details from the share register of private companies generally made public? - [ ] Always - [ ] Sometimes - [ ] Rarely - [x] Generally not > **Explanation:** Share registers of private companies are generally not made public, and access is restricted to the company and its shareholders. ### During which corporate event is the share register scrutinized to ensure accurate distribution of voting rights and dividends? - [ ] Product Launch - [x] Annual General Meeting (AGM) - [ ] Staff Meeting - [ ] Marketing Event > **Explanation:** The share register is scrutinized during the Annual General Meeting (AGM) to ensure that voting rights and dividends are correctly distributed. ### Can changes to a share register affect a company’s dividend distribution? - [x] Yes, they can affect it significantly - [ ] No, dividends are fixed - [ ] Changes are irrelevant to dividends - [ ] Dividends are solely at the company's discretion > **Explanation:** Changes to a share register can significantly affect dividend distribution as the shareholding data must be accurate for proper allocation. ### What is another common name for a share register? - [ ] Profit Ledger - [ ] Stock Diary - [ ] Equity Notebook - [x] Register of Members > **Explanation:** Share register is also commonly known as the Register of Members. ### Which type of company is most likely to have a simplified share register with fewer shareholders? - [x] Private Companies - [ ] Publicly Traded Companies - [ ] Non-Profit Organizations - [ ] Government Agencies > **Explanation:** Private companies generally have a simplified share register with fewer shareholders compared to publicly traded companies. ### What aspect does NOT predominantly affect the update frequency of a share register? - [ ] Company mergers and acquisitions - [x] The age of the corporation - [ ] Daily share trading activities - [ ] Share transfers > **Explanation:** The update frequency of a share register is predominantly affected by share trading activities, transfers, and corporate events like mergers and acquisitions, rather than the age of the corporation.

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