If you trade in shares yourself, there is a good chance that your name is recorded in a share register. In this article, you will find out exactly what such a register is, what data it contains and what it is used for. It also explains whether such registers are mandatory and whether it is possible to refuse registration.
Share register Definition
Companies can issue different types of shares. One example is so-called Registered shares. This type of share is accompanied by the obligation to record the details of the owners.
This takes place in so-called Share registers. In some cases, the term Share register which can be used as a synonym for share register. However, the latter has become established in practice.
These are directories in which Shareholder data of a particular company. This information helps the companies to identify the owners of the shares.
Companies can draw important conclusions from such data, such as the structure of their investor base. These registers are therefore instruments that serve to record and manage important data about their shareholders.
The following data is contained in such a register:
- First and last name of the shareholder
- Date of birth
- Anschrift
- Number of shares
Is a share register mandatory?
As soon as companies issue registered shares, the Keeping a share register is mandatory. This is set out in Section 67 of the German Stock Corporation Act (AktG). Owners must be registered in the registered shares so that they can exercise their Being able to use your rights as a shareholder.
- Such rights include, for example, the receipt of dividends issued by some companies.
- Another example is participation in general meetings. Here, you can often use your own voting rights to participate in important company decisions.
At Bearer shares is a Transfer not necessaryThese can be held anonymously. Registered shares now predominate, which is why the majority of companies are obliged to keep such a register.
What is the purpose of a share register?
The precise identification of owners brings advantages. For example, companies can recognize in good time when a Hostile takeover by the competition. In addition, the Investor structure better understoodwhen the data is included.
In addition, such information makes it easier to Notification obligations reliably. This enables the Communication between the company and its own shareholders can be optimized through improved transparency. The register also serves as the basis for general meetings.
Registration in a share register
Normally, the Transmission into the directory Automatedso that shareholders do not have to take action themselves. This normally happens digital at the respective company. There are hardly any classic share registers in paper form any more.
- Shareholders buy a share on a stock exchange, which changes ownership.
- The custodian bank then transmits the data to the respective company.
- The company then enters this data in the directory and updates the owner, his address and other information accordingly.
- The previous shareholder is removed from the register.
- This ensures that the register is constantly updated and contains the latest data.
The share register is not publicly viewable. This means that outsiders have no way of seeing what the investor structure of a company looks like. Shareholders of the respective company are also only allowed to view their own data.
Shareholders have the option to object to the transfer to the register. In such cases, the custodian bank is entered in the register. This Contradiction has, however Consequences for the shareholder: He may not use his voting rights at the Annual General Meeting.
Conclusion: How a share register works
Companies that issue registered shares must obligatory keep a so-called share register. Such a register contains the names, dates of birth, addresses, number of shares and e-mail addresses of the company's own shareholders.
Such directories have advantages: the companies have a precise Overview of the structure of its shareholders. Hostile takeovers can be identified in good time in this way. Companies can also improve communication with their shareholders.
Normally, the transfer to the share register takes place Automated and digitalso that shareholders do not have to take action themselves when purchasing new shares. The corresponding Bank of the share holder transmits the data to the company, which then updates the directory.