Every public
company appoints
a registrar that maintains the register of shareholders. Some set this up in-house, but most out-source it so as to focus on their core business interests, while professional hands manage functions relating to the register of the company.
Ordinarily, all of this shouldn’t border you, but as a shareholder, you will interface with the registrar somehow, someday. So, it’s good you know a bit about them and what they do that might affect you, mostly for those that have been asking questions on their share holding,
Primarily, the registrar of any public company maintains the register of members. That membership also keeps changing, possibly each day, as shares are bought and sold in the secondary market. If I sell part of my shares in Nestle Plc to you today, my holding reduces, while yours increases, or, if you were not hitherto a shareholder, your name gets in. The registrar ensures that these movements are constantly updated. If dividend is declared, for instance, you want to be sure that it goes to the rightful owner, which is the name on the register. If that register is not accurately updated, you can see money, or bonus shares, being channeled to the wrong beneficiary.
They also process the declared dividends and bonus issues, preparing each shareholder’s cheque (dividend warrant) or e-dividend, bonus certificate or e-bonus and ensuring that each person receives his proper entitlement. Similarly, the annual reports and accounts of the company are distributed to members by the registrar. When new share issues are made by a company, the registrar is also in the thick of the collation, allotment and issuance of certificates to the subscribers.
The registrar keeps your account updated, as stated above and sends your dividend or bonus. When you have to sell your shares or lodge with the CSCS, the certificates go to the registrar for verification. If your signature is deemed irregular, you have an issue to settle with the registrar which may ultimately require an indemnity from your banker.
If you lose your share certificate, you have to go to the registrar for a replacement. There will be conditions to meet, but you don’t have any choice. If you fail to receive a dividend cheque or a bonus or other share certificate, you will have to settle that score with the registrar.
You delay in presenting your dividend warrant for payment and it gets stale, you have two choices - forego your income or spare time to see the registrar (or send your stockbroker) to revalidate it.
Do you have any question concerning investment, how you can join investment club, buying shares, dividend, share certificate, stockbrokers, registrars, you want answers to? Send your questions via text to or call 08058767059. Email: amadasunese@nigerianobservernews.com. All questions will be treated comprehensively on this page.
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