Transfer Agent

A transfer agent is a bank appointed by a company to take care of something related to securities handling. In general, many transfer agents take care of matters related to shares . As an agent, the bank will record and report the company’s stock portfolio. In addition, banks also have the task of establishing communication with other shareholders. The goal is as a liaison between the company and other shareholders.

Previously, when investors bought shares through securities , they would get physical evidence in the form of paper certificates. The certificate is issued by the transfer agent. Now, the transfer agent will issue a digital certificate of ownership that is directly connected to the server. This really saves time and money.

Transfer Agent Duties

In detail the tasks of the transfer agent are as follows:

  • Managing investor financial records.
  • Check investor account balances.
  • Record stock transactions.
  • Issued a share purchase certificate.
  • Cancel the share purchase certificate.
  • Deal with investor concerns.
  • Reissue lost or stolen share certificates.

The Role of Transfer Agents to Shareholders

Transfer agents have the responsibility to make dividend payments (share profits) for registered shareholders. After that, the transfer agent will make a report on the earnings of these shares to the Internal Revenue Service (IRS) periodically. The goal is to calculate the tax of the shareholders.

Other Roles of Transfer Agents

In addition to dealing with securities, the company also uses the services of transfer agents to handle major actions, such as mergers, acquisitions , spin-offs, and as an election inspector in annual meetings . For special things like this, companies can choose a transfer agent who is used to handling this.

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