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Opinions of Thursday, 10 March 2011

Columnist: Teye, Sophia Kafui

The Role Of Registrars Of Shares In The Capital Market


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Who are share registrars and what do they do?



Registrars of shares keep an up-to-date record of all stocks bought, which includes names of individual shareholders, their shareholdings, their addresses, and signatures amongst other salient information. These addresses and signatures of clients can be changed upon request of holders after verifications are done. It is necessary to maintain a correct address at all times because notices of annual general meetings and other relevant correspondence are communicated through this medium. They are also responsible for paying dividend to qualified shareholders when it falls due. Indemnity for loss certificates and for lost dividend warrants forms are given upon request of holders when documents are lost or destroyed and after completion, new ones are issued. Among their numerous functions, they transfer shares on behalf of a deceased holder. If you should invest in shares, you would be entitled to dividends which are declared by board of directors at an annual general meeting. Capital gains, bonus share issues and right issues are among the several benefits of investing in shares. Capital gains are increase in the value of a capital asset (investment or shares) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A bonus share is a free share of stock given to current shareholders in a company, based upon the number of shares that the shareholder already owns. Although the total number of issued shares increases, the ratio of number of shares held by each shareholder remains constant. A rights issue is a way in which a company can sell new shares in order to raise capital. Shares are offered to existing shareholders in proportion to their current shareholding, respecting their pre-emption rights.



Responsibilities of the Registrar to Shareholders

Keep register of shareholders

See to the arrangement of annual general meetings and posting of annual reports to all shareholders

See to the issuance of certificates to new shareholders and existing shareholders who have misplaced their certificates

See to the payment of dividends to qualified shareholders

Works on share transfers( both mutual and deceased)

The responsibility of the registrar to the broker

Receive lodgments from brokers through which they effect transfers of share unto the central depository when document presented are verified and justified.

Print statement of broker’s holdings periodically.

Also print statement of holdings to clients upon request

The registry is also of assistance to Students and other stakeholders may need annual reports of listed companies for research purposes.

Documents you should always take along when going to the registry

Valid identification card (Driver’s License, passport, National Health Insurance Scheme Card and Voters’ Identification Card.

Receipt on shares bought

Share certificates

Where a deceased transfer is requested, a probate or Letter of Administration is required, depending on the circumstance in which the holder dies.

Where an Administrator or an Executor cannot come personally to help with the transfer. It is deemed necessary to apply for a power of attorney from the court to facilitate the transfer.

Documents you should take to your registrar as a broker

A broker should ensure that all the lodgments to the registry contain valid documents and duly certified since these documents are transferred to the GSD.

Correct number of shares must be quoted on the GSD form

Ensure that a photocopy of a valid photo ID of the shareholder is attached to the GSD form and is duly certified

Because there are several registrars dealing with different equities, brokers must always ensure that the right equity is presented to the registrar involved in the transaction.

Here are the registrars of listed companies on the Ghana Stock Exchange.



NTHC (located in MARTCO House, Adabraka near Farrisco Traffic light)

Fan Milk Ltd

Pioneer Kitchenware Ltd

Standard Chartered Bank Gh. Ltd

Sg-Ssb Ltd

Aluworks Ltd

Produce Buying Co. Ltd

Anglogold Ashanti Ltd

Enterprise Insurance Co. Ltd

Cocoa Processing Co. Ltd

Sam Woode Ltd

Benso Oil Palm Plantation Ltd

UT Bank

Clydestone Ghana Ltd

Golden Web Ltd

Ayrton Drug Manufacturing Ltd

Transaction Solutions Ltd.



COMPUTER SHARE REGISTRARS

Cal Bank ( Located in Osu opposite Pill Box Pharmacy)



MERCHANT BANK

ACCRA BREWERY LTD.

HFC BANK LTD

MECHANICAL LLOYD CO. LTD

PZ CUSSONS GH. LTD

SUPER PAPER PRODUCTS CO. LTD

UNILEVER GHANA LTD.

GUINNESS GHANA BREWERIES LTD.

CAMELOT GHANA LTD.

CFAO GHANA LTD

TOTAL GHANA LTD.

TRUST BANK (THE GAMBIA)

STARWIN PRODUCTS

SIC INSURANCE COMPANY LTD

GOIL GHANA LTD.



GHANA COMMERCIAL BANK (Located on the 4th floor GCB in Tower on High Street adjacent Bank of Ghana)

GHANA COMMERCIAL BANK

ECOBANK GHANA LTD

ECOBANK TRANSNATIONAL INCORPORATED

GOLDEN STAR RESOURCES LTD



Now that you know the role of registrars in the capital market, make use of this information as you invest in the capital market. Direct all questions, suggestions and comments to skafuiteye@gmail.com or skteye@gmail.com

©, Sophia Kafui Teye

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