Corporate governance provides for preparing a code of conduct for an organization which will help the company in showcasing the commitment of the company to work ethically on the ethical stance and to maintain a good image in market both domestic and global market.
Public companies are required to appoint an independent Share Registrar to maintain the register, process share transfers and any actions as may be required by the Company. The appointment of an independent Share Registrar is imperative since the shareholding information and records should be maintained objectively and the same should not be interfered by any party.
The share registrars are also responsible for distribution of dividends and maintaining the dividend records, registration of members during general meetings, communication of key information to shareholders, allotment of shares, issue of bonus shares, filing share registration reports with the regulators (if any) and the Company, shareholder relations and dispute resolution, among other roles.
Some public companies have put in place an internal share registrar to maintain the shareholder records. This may however impact shareholder confidence since management should be distinct from the ownership of the Company. For this reason, it is recommended that both public and private companies should appoint external independent share registrars.