Why Companies Choose Transfer Agents
Most public or private companies with shareholders decide to work with a professional transfer agent to act as custodian for their shareholder accounts and to handle any changes in shareholder ownership. Managing shareholder accounts requires purchasing the necessary software to handle the processing and recordkeeping, as well as hiring staff with account administration expertise in corporate securities and compliance.
Meeting Securities and Exchange Commission (SEC) compliance when it comes to account administration can be a job in itself. Most corporations prefer to hire a specialist so they can avoid any compliance problems with the SEC.
In addition to staff issues, account administration of the hundreds ...