A transfer agent is responsible for performing tasks for publicly traded companies all over the country. However, this basic explanation does not completely describe what they really accomplish. It is not only public companies who benefit from having a transfer agent. The private company transfer agent exists as well, to help these companies keep up with their recordkeeping. If you work for a private company, you may not even know what a transfer agent is to begin with. Even if you perform an internet search, you may be confused with the results.
The primary responsibility of a transfer agent is to assist companies with the maintenance of records of ownership as well as proxy mailings and even dividend payments. But that is not all of their responsibilities. Private companies may have stock that should be explored which is why they would benefit from a transfer agent.
Governance Practices
Even when your company is not listed in the exchange, and you can only trade and sale privately, you still have quite a few needs that could benefit from having a transfer agent on your side.
- You will want to have a detailed record of shareholders as well as their ownership positions which includes history.
- For tax purposes, you will need to keep track of any stock or cash dividends.
- You will also need someone who is able to manage your voting and proxy solicitation if you have a company that holds a yearly shareholder’s meeting.
Every record you keep within your company must reflect its best interests. This also includes the best interests of the shareholders and employees. You need to be able to free up any resources you have so you can focus on why you got into business in the first place.
Data Security
A reputable transfer agent will be able to provide your company with a great deal of data security in order to keep shareholder records fully protected from threats such as hacking. This is not only important for your shareholders but this is also important for you as well. If your shareholders want to have access to their information via the internet, then you need to make sure that it is completely secure. An expert company will have a great deal of expertise and benefits to offer any company who wants to experience the perks to having a transfer agent backing them up.
If you are looking for a private company transfer agent, then Colonial Stock Transfer Company, Inc can help. Visit their website to learn more today.
