Registered Share

A registered share is a share issued in the name of the shareholder, with ownership documented through entry in the corporation's share register. This registration allows the corporation to know its shareholders, strengthening corporate governance and fulfilling transparency register requirements: shareholders holding more than 25% of voting rights are considered beneficial owners and must be clearly identifiable. Unlike the more easily tradable bearer share, the registered share offers increased transparency but restricts anonymous transfer and thus partially limits tradability on the stock exchange. Particularly for non-listed corporations, there is often a requirement for registered shares, as disclosure obligations under the Anti-Money Laundering Act and EU Transparency Directive are more easily met. When transferring a registered share, in addition to the civil law assignment contract, re-registration in the share register is regularly required to admit new shareholders to the general meeting and ensure dividend entitlement. For single-shareholder corporations, the sole shareholder is also mentioned in the commercial register. Investors and company founders use registered shares to efficiently organize control, compliance, and investor communication.