Shareholder of Record
The individual or entity whose name appears directly on a company's share register as the legal owner of shares on a specified date.
Full Definition
A shareholder of record is the person or entity formally registered on the issuer's books as the owner of shares on a given record date. This designation determines eligibility for dividends, voting rights, and corporate action entitlements. In modern markets, most retail investors hold shares in 'street name' through broker-dealers, meaning the broker's nominee (often the Depository Trust Company) is the shareholder of record, not the beneficial owner. Editors should distinguish this term from 'beneficial owner,' as the rights and obligations of each differ materially.
Usage
Usage note: Always pair with a specific record date when used in corporate documents; an unanchored reference to 'shareholder of record' is ambiguous and should be queried.
In Context
- "Only shareholders of record as of the close of business on March 15 will be entitled to vote at the annual general meeting." — Proxy Statement
- "The transfer agent confirmed that 4,200 shareholders of record held certificated shares as of the record date." — Annual Information Form