Extract from the register of shareholders - a security or an information document?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Shares are securities that confirm the rights of their owner to take part in the management of the issuing enterprise through participation and voting in general meetings of shareholders. Accounting for all shares must be carried out in a special register. The maintenance of the register of shareholders may be entrusted to the enterprise itself or to a specialized legal entity - the registrar.

Earlier, the shares of any company were issued in paper form, on special protected forms. Since 2002, no one has issued paper shares, and their existence can only be confirmed by obtaining an extract from the electronic register of securities holders.

Why do I need an extract

An extract from the register of shareholders may be required not only to confirm ownership, but also in the following cases:

• when applying for a loan, shares can be provided as collateral or in this way confirm your solvency;
• for share alienation;
• when performing notarial acts.

That's not all. An extract from the register of shareholders may be required if it is necessary to request documents from the issuing company that the companyprovides only participants with a certain number of securities. From the extract, you can get information about the percentage of the applicant's securities to the total number of issued shares.

How and where to get

First of all, you need to decide where to get an extract from the register of shareholders, that is, find out who keeps the register. This may be the enterprise itself or a specialized registrar. Such information can be obtained from the extract from the Unified State Register of Legal Entities.

The second stage is to determine the amount of information that the statement should have and write the request itself. The letter must display a personal account and personal data, which will have to be confirmed later.

The third stage is to find out about the cost of the service and pay the required amount. If the register is maintained by the company itself, then no extract fee should be charged.

The last step is to submit a request and receive an extract.

It takes 3 to 5 working days to issue an extract.

What is a document

Extract from the register of shareholders is a written document signed by the registrar and stamped. If the register is maintained at the enterprise, then the document is certified by the signature of the head and the seal of the enterprise.

Let's consider an exemplary sample of an extract from the register of shareholders.

Document title

Enterprise/registrar, legal form and name.

Date on which the document is valid and place of its preparation.

Full name of the issuer, form and name of the enterprise, address and registration information in the Unified State Register of Legal Entities.

Information about the person who maintains the register.

Type of securities: ordinary, preferred, registered.

Registration number of securities issues, date of registration and by which authorized body the registration was carried out.

Example for legal entity

n/n	Personal account	Full name/name of legal entity	Residence address/ legal address	Category or type of stock	Koli- quality, pieces	Nomina- Fine value, rub.	Share in authorized capital, %
1	1111	LLC "First"	6545, Bobruisk, st. First, 1	ordinary- ny	10000	100, 00	50%

Example for an individual

n/n	Personal account	Full name/name of legal entity	Residence address/ legal address	Category or type of stock	Koli- quality, pieces	Nomina- Fine value, rub.	Share in authorized capital, %
1	2222	Second V. V.	6545, Bobruisk, st. Second, 2	nominal	5000	100, 00	25%

(An extract from the register of shareholders is not a security.)

Director

LLC "Issuer" signature, full name, seal;

or

LLC "Registrar", signature, full name, seal.

Additional information included in the statement

In addition to the information described, the statement includes:

• whether or not there are encumbrances in respect of the securities requested;
• for what period information about specific promotions was entered;
• whether a registrar was involved in maintaining the register.

The register keeper is not required to enter any information into the register itself that an extract was issued at some time. When receiving and issuing an extract, it is recommended that you follow the usual rules for maintaining business records. That is, it is best to register a request in the book of incoming documentation, and the answer in the book of outgoing documentation.

Applicant Requirements

Upon receipt of a request, the person entrusted with maintaining the register of shareholders is obliged to verify the identity of the applicant. To do this, the shareholder must have documents confirming his identity, a passport or the right to drive a motor vehicle, a militaryticket. If the request is transmitted through an authorized person, then he must have a power of attorney drawn up in accordance with all the rules of the current legislation.

Who else can get a statement

In addition to the owner of the securities, an extract from the register of shareholders has the right to receive law enforcement agencies, courts and pledgees. But do not be afraid, the extract does not have the status of a security, it is only a confirmation of the validity of the rights to securities, in other words, it is an information document. It is the responsibility of the Registrar to display accurate information.

The pledgee has the right to receive information only on the amount of securities that the owner has or is pledged.