Keeping company records up to date is not always a top priority for the directors of smaller companies. However, failing to keep the shareholders’ register up to date can have a downside if a share transfer has occurred but the new owner’s name is not entered into the register of members.
The problem is that under the Companies Act 2006, except in very limited circumstances, the person shown as a member in the register of members is a member and a person not shown isn’t – until the register is rectified.
This can have practical effects such as making notices of meetings invalid, invalidating votes of shareholders and so on and can affect, as it did in a recent case in the Supreme Court, whether or not one retains the rights attaching to shares transferred for financial purposes into the names of nominees.
- About Us
- Our People
- Services for You
Services for Business
- Business Sales & Purchase of Assets Shares
- Commercial Property
- Contract Drafting
- Corporate Finance
- Corporate Governance and Directors Responsibilities
- Debt Recovery
- Dispute Resolution, Litigation and Mediation
- Intellectual Property, Trade Marks and Patents
- Licencing for Hotels, Pubs and Clubs
- Notarial Services
- Partnerships and Limited Companies
- Shareholder, Partnership and Joint Venture Agreements
- White-collar Crime
- Pay Your Bill
- Contact Us