What is a Transfer Agent?
Q: What's a Transfer Agent?
A: Transfer agents are hired by companies as "caretakers"
for their shareholders. They keep shareholder records and issue new
certificates. They distribute proxies, dividends and annual reports,
and they forward company correspondence to shareholders. If you are
confused about whom to select as your company's transfer agent, you
are not alone
Q: I plan on taking my company public, do we need a transfer
agent?
A: Yes, either you hire a commercial agent or perform the function
yourself. Making the right decision is important and should be carefully
thought out.
Q: We are considering changing transfer agents. Can you help
us change?
A: If you want to change transfer agents, it's prudent to understand
your available options. We can help you through the process. Please
contact us.
Q: Do bank transfer agents offer different services than non-bank
agents?
A: Larger bank transfer agents have depth, experience, and wide
resources, but typically charge more money. Many smaller agents provide
more personalized service but may not be technologically current.. It
is important to consider the transfer agent's reputation, technology
and commitment to staying in business.
Q: I am considering maintaining the transfer agent function
in-house. What's involved?
A: While some large companies perform the transfer agent function
themselves, it is not the norm. Transfer agents provide highly specialized
services governed by stringent SEC regulations. Few companies - especially
smaller or start-up companies - are positioned to undertake such critical
services on their own.
