The share register defines register whose the main purpose is to:
- determine a basis for the exercise of shareholders' rights regarding the company, and
- to supply the company shareholders, and
- supplying other information in order to estimate the ownership structure of the company.
Every company has to maintain its share register. Moreover, the share register of a company has to include information about:
- the shareholders' names,
- the company numbers or another identification numbers,
- information regarding each share's number,
- personal ID numbers,
- the class where each share belongs,
- postal address,
- the information if share certificates have been provided.
When all initiators have signed the memorandum of association so the share register should be prepared. Information concerning subscribed shares has to been entered instantly in the share register.
Whereas some person shows a share certificate or in another way supplies proof of her or his purchase so the board of directors or the person authorized through the board of directors should instantly enter such person like a shareholder in the share register. In another case when the shareholder or other authorized person notifies that a stated of circumstance in the share register has changed in some way so that change has to be noted in the register immediately.
Implements of shareholders rights to the company are constrained through the information included in the share register so it means that the shareholder might not implement his voting rights unless he has been written down in the share register.
The share register has to be maintained:
- for the time when the company exist,
- for a term after the dissolution of the company which is not less than ten years.
After the dissolution of the company, the share register has been kept through the company 's liquidator.
The responsibility of the board of directors
The responsibility of the board of directors relies on ensuring that the share register is:
- maintained and
- made available for each person who wishes to review it.
If the company not maintaining the share register, so it can lead to the liquidation of that company or get fined if not remedied .
- (J.A. Gurria 2013)
- (E. Rusrie 2008)
- (B.H. Klose 2009)
- Gurria J.A., (2013)., Globar Forum on Transparency and Exchange of Information for Tax Purposes Peer Reviews, OECD Publishing
- Hobson R., (2011)., How to build a share portfolio: A practical guide to selecting and monitoring a portfolio of shares, Harriman House Limited
- Klose B.H., (2009)., Asset Tracing and Recovery: The FraudNet World Compendium, Erich Schidt Verlag Gmbh and Co KG
- Rusrie E., (2008)., Finland Company Laws and Regulations Handbook, International Business Publications
Author: Mateusz Gołda