Access to company share registers
Companies will no longer have to allow unrestricted access to their share register by people outside the company
Under provisions of the Companies Act 2006, that came into force on 1 October 2007, a company that receives a request to see its register of members can ask for the applicant’s name and address, the purpose of the request and whether the information will be shared with anyone else
The company must then comply with the request within five working days or apply to the court to restrict access. But the court will only allow the company not to comply if it is satisfied that access is not being sought for a proper purpose, a term that the legislation does not define, leaving it for the courts to decide
The new procedure applies to requests to view the register received after the first return filed by the company to a date after 30 September 2007. Companies that want to avail themselves of the new provisions quickly could bring forward their return date. From 1 October 2008, company returns will no longer have to show the addresses of shareholders, except for those who hold more than 5% of the shares in a plc.