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Why do you need a registrar?

Quite simply, there is currently no legal obligation for companies who are not listed on a stock exchange to maintain live records of holders of shares and other securities they have issued.

Small private companies either carry out this task in-house, or contract with their professional advisers such as lawyers or accountants to keep a registrar, but this approach may not always be ideal – and is difficult to scale.

It can be time consuming, expensive, pose an operational risk and is also impractical as a business grows – or if it is issuing a wider range of instruments, such as bonds.

As the number of securities holders on a company’s register – and consequently the complexity of managing it – expands, the requirement for professional registrar services arises.

Outsourcing the management of the securities holder register allows a firm with specialist knowledge to remove the internal burden, whilst from a governance perspective this also provides a degree of reassurance to directors – and indeed securities holders in general.

Our point is that shareholder registry services have been long overdue a comprehensive rethink

In order to cope with electronic – and potential high volume-trading, where ownership of securities may change in just a few microseconds, many jurisdictions have turned securities into a purely electronic format.

However in some locations, including Ireland and the UK, a system operates where physical share certificates can sit alongside electronic holdings.

Avenir, with its excellent technology, operate an efficient real time on-line register, but can also offer paper certificates where this is preferred. QR codes are automatically added to all certificates to enable easy authentication.

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