What is share registry software?
Most businesses around the world have something in common–shareholders. Your company may have many shareholders if it’s large and you’ve listed it publicly.
However, keeping track of all of your company’s shareholders can be challenging. Fortunately, share registry software exists. It’s used by third-party companies that you can hire to manage your shareholders.
What is a share registry software?
Used by stock transfer agents, share registry software is an unbiased third-party company tool that maintains a shareholder register. Shareholder and shares data are conventionally kept in an excel or word file.
Thanks to the software solutions technology and cloud computing advancements, share registry software platforms like Cake can now help companies easily monitor shareowners and shares.
Shareholder register: What is it and how it works
A company is required to keep and maintain a record that’s referred to as a ‘shareholder register’ or a ‘register of members’ since each company, especially a large one, must record information about their members and shareholders.
To access this information via a company extract, a fee may be required from non-members. Company members, however, can typically access the share register information for free. Your company is typically required to give a share register copy within seven days once a request is made.
Information included in a share register
Members’ information should be found in a company’s shareholder register, including the following:
- Name and address
- The number of shares the member held
- Share register inclusion date
Note that the register must be updated accordingly if the details of a member changed.
Details of issued shares must also be included in the share register, including:
- The date when the shares were issued
- The number of issued shares
- The class of issued shares
- Shares’ payment status
- The share number or share certificate number for every share
When it comes to the shares’ payment status, the share register of a company must reflect the unpaid amount total on shares. Also, it’s important to update the share register accordingly should the details of shares or shareholdings change.
Share registry software: How does it work?
All of the shares issued by a publicly-listed company must be taken into account by the share registry company using share registry software. Not only is it essential to account for each share but also the names of the share owners must be entered or recorded in the registry.
The share registry software, likewise, must also take account of restrictions when it comes to the transfer of shares to another person as set aside by a company. The updating of the new shareholders’ names is the share registry’s responsibility if the stocks transfer is valid.
Overview of commonly offered share registry services
The share registry software is very comprehensive. Share registry companies usually offer the following services using it:
Initial public offerings
- Process applications for Public tranches, Reserved, and Placement
- Review timeline with the relevant professionals as well as Legal Adviser, Sponsor, Issue Manager, and Issuer,
- Advice on settlement logistics,
- Liaise for the crediting of new securities into the successful applicants’ securities accounts
- Submit relevant confirmations
Register maintenance
- Allot new shares that arise from the exercise of ESOS (Employee Share Option Scheme)
- Maintain the register of warrant holders, unitholders, and shareholders
- Issue warrants and shares certificates as well as confirmation notes for units
- Register documents, like probates, as well as safe-keep seals for shares and securities
- Process payments for dividends and distributions
- Prepare distribution statistics and securities holding
Corporate actions
- New shares allotment and issuance arising from Restricted Share Plan and Performance Share Plan
- Private Placement/Bonus Issue/Rights Issue
- Distribution Reinvestment Plan
- Distribution-in-Specie, Scrip Divided, and Cash Dividend
- Mandatory and Voluntary Offer
- Capital Restructuring (Stock Split and Share Consolidation)/Reverse Takeover/Mergers And Acquisition
Benefits of using share registry software
The use of share registry software brings the following benefits to companies that are publicly-listed:
1. Nurtured shareholder relationships
You can build and maintain a relationship with all your shareholders by knowing who they are. As a result, inputs/suggestions and perceptions for company growth and on company performance can be solicited from major shareholders.
2. Meet legal requirement
It’s a legal requirement for companies that issue shares to have a share registry that’s unbiased. Prevention of insider trading and avoiding stock manipulation is the ultimate goal of an unbiased share registry software.
Whether your company is publicly-listed or privately-owned, a share registry will be able to tell who owns your company.
Final thoughts
With the help of share registry software, companies can secure information regarding shareholders’ names and their shares against tampering.
Share registry software also provides a platform for companies where they can upload and update shareholder information as well as useful tools in analyzing data and providing accurate reports.
