Signed an equity transfer agreement, but not a shareholder yet?
Signing the Transfer Share Form Is Not Enough
- Signing a Transfer Share Form is only part of the process
- The shareholder registration must also be completed
When Do You Officially Become a Shareholder?
- Under Section 51 of the Companies Act
- You officially become a shareholder only after your name is entered into the Register of Members (ROM)
Shareholder Rights Begin After Registration
- Once registered, you are entitled to shareholder rights, including:
- Voting rights
- Dividends
- Other shareholder entitlements
- You will also assume the corresponding shareholder responsibilities
No Registration, No Shareholder Rights
- Even if you have signed the Share Transfer Form
- Or have acquired the shares
- If your name is not recorded in the ROM
- You are not legally recognised as a shareholder
The ROM Is the Official Record
- Shareholder status, voting rights, and dividend entitlements
- Are determined based on the Register of Members (ROM)
Summary
- Signing a Transfer Share Form alone does not make you a shareholder
- Your shareholder rights begin only after your name is registered in the ROM
- Always confirm that the registration has been completed after the share transfer process.