Shareholder of Record
The term "Shareholder of Record" describes a shareholder's name as it appears on the registrar of the issuer. It is an important number that establishes who is officially the owner of a company's shares.
What it Means:
The acknowledged owner of shares, or Shareholder of Record, gives Indian founders clarity on the ownership structure. It shapes corporate governance dynamics by reflecting the legal entity entitled to benefits like voting rights and dividends.
How to Calculate:
Examining the issuer's share registry or registrar is necessary to calculate the shareholder of record. The Shareholder of Record is the person or organization that is officially listed as a shareholder. It's a straightforward identification process.
Why Measure:
For Indian founders, measuring Shareholder of Record is essential to establishing ownership transparency and corporate governance. It guarantees that, when it comes to return distribution and participation in decision-making processes, the business acknowledges the legitimate shareholders.
Examples:
Think of a startup in India that is auditing its shareholders thoroughly. Identifying the Shareholder of Record helps in validating the accuracy of records, preventing discrepancies. This meticulous approach is crucial for maintaining trust and integrity in the business.
For Indian founders, it is imperative to comprehend and regularly observe the Shareholder of Record. In addition to maintaining transparency, it establishes the groundwork for efficient shareholder communication and long-term company expansion.