The Advantages of a Professional Private Company Transfer Agent

ROCIO HELLER May 5, 2020 Financial Services No Comments

Many private firms across the globe are employing specialized services to make work easy. So far, they are enjoying the benefits and stand to gain more with a professional.

Private Company Transfer Agent. Traditionally, shareholders in privately-owned companies are few. Additionally, the stock activity in these companies is not very high. The task of recordkeeping is the responsibility of a firm’s legal counsel or a company official.

This essential task can be the duty of someone who is well trained to execute the job well. A company can also hire a third-party legal service and assign responsibility.

Companies that don’t utilize the services of a transfer agent may trigger several problems for their investors. A perfect example is when shareholders get a stock certificate. In such a scenario, they will require to know how to correctly transfer their shares if they happen to make a private sale under UCC, state, and federal rules without a reliable professional instructing them how to do it.

Also, shareholders stand to lose their certificate, which can, in turn, create an adversarial claim and legal burden for the insurer.

A Private Company Transfer Agent can assist in issuing shares, process all share transfers, maintaining a stock ledger, and even replace a lost stock certificate.

What are the Other Benefits of a Transfer Agent?

Reliable guidance with limited legend removals Substantial cost savings
An agent maintains a secure electronic book-entry system
An agent is beneficial to investors inclusive of all shares which are held in an entry form
Decrease of liability and well-organized support

EquityTrack is a cap table management provider. For more information, inquiries, and bookings, contact them at https://www.equitytrack.co/.

Also visit us on Facebook for more information.