By law, every company is required to keep a register of its members (also called a register of shareholders, since 'member' and 'shareholder' are interchangeable). Placing a shareholder’s name and details onto the register of members is the final stage to complete before becoming the legal owner of shares in a company.
Here, shareholder rights specialist Paul Lunt gives a brief overview of the register of members, including who determines applications for entry, the legal requirements and rules around keeping the register open for inspection.
Who determines applications for entry onto the register of members?
It’s the company’s board that considers and determines applications for entry onto the register.
For example, a shareholder in receipt of a signed share transfer form then proceeds to ask the board to recognise and register that transfer by entering the new owner’s details in the register of members.
Legal requirements for register of members
The legal requirements for a register of members say that the entries must include:
- The names and addresses of the members.
- The date on which each person was registered as a member.
- The date at which any person ceased to be a member.
- Which shares are held by each member, distinguishing each share:
- by its number (so long as the share has a number)
- where the company has more than one class of issued shares, by its class.
- The amount paid or agreed to be considered as paid on the shares of each member.
Open for inspection
Every register of members must be made open for inspection by both members of the company and non-members. There are specific provisions concerning the process of requesting and facilitating inspection.
Talk to us
Our shareholder rights specialists can outline your legal position as a shareholder in a private limited company and help you to navigate this complex area of law.
Talk to us by completing our contact form below.
Talk to us
Loading form...