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What is a register of shareholders and why do you need to draw one up?

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Your share register is a list of all persons and companies that own shares in your company.

A shareholder can at any time request that your company issue a share certificate for the shares they own. CSD-registered companies that trade in their shares are subject to different rules. The share register shall be drawn up as soon as all the founders have signed the memorandum of association.

This is what a share register should contain:

  • The number of the shares.
  • The owner’s name and social security number, or organization number if it is a company, and postal address.
  • Date when the owner was introduced.
  • Classes of shares, such as A and B shares
  • If share certificates have been issued, the date of issue is noted
  • If the share has a reservation such as a pre-emption reservation

Who is responsible for the share register?

The Board of Directors is ultimately responsible for ensuring that a share register is drawn up and that it is kept up to date. Any changes must be recorded immediately with the date of the change itself. The share register is not registered by the Swedish Companies Registration Office but must be available at the Swedish Limited Liability Company itself and is a public document that you are obliged to present when requested. If there is a change, it is the shareholder who must report the change to the board of directors.

What is the purpose of a register of shareholders?

Your share register clarifies the ownership structure in the company and shows who has the right to vote at the general meeting or receive the decided dividend.

Do you have to have a share register?

As mentioned above, you are obliged by law to have an updated share register, this is regulated in the Swedish Companies Act. Surprisingly many companies have major shortcomings regarding this. If the board fails to fulfil its task of keeping a register of shareholders, it risks being convicted of fines or, in extreme cases, even imprisonment.

A more common nuisance usually occurs when selling when unclear conditions can cause large, costly and long-term problems. The share register is the proof of ownership in the company.

Online share register

A digital share register makes it easy to do the right thing. Handling is greatly simplified and it becomes easy to comply with all legal requirements.

The Board of Directors gets access to an up-to-date share register with a clear list of owners. The digital share register enables it to be quick to produce various reports, such as completed transactions, share overview and owner list.

It will also be easier to handle registrations of transactions and issues, preparations for general meetings, management of share certificates and pledges, ownership analysis and reconstruction of lost share registers.

You also reduce the risk of miscalculations and satisfy all of today’s availability requirements.

Try it free for 30 days!

Discover the benefits of a digital share register book book a free demo and test for free for 30 days. Completely without obligation.

Boardeaser provides powerful, secure and cloud-based corporate governance solutions.

Boardeaser simplifies and streamlines your everyday life. We have solutions in board work, financial reporting, management and governance – in the same platform.

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