What are registered shares?

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A registered share requires for its transfer the approval of the issuing company. Thus, the
already low marketability of shares is further restricted. As the company may refuse to consent
to the transfer, the shareholder is initially only entitled to assert the rights resulting from the

The law provides a fundamental justification for the issuance of common stock: Not fully paid
shares may be issued only as registered shares. In this way the company is in a position to
determine whether the shareholder in the share register has sufficient credit for its remaining
payment obligation.

Shares also offer the possibility for the company to pay only part of the share capital or
contributions in kind to bring over a longer period.

Registered shares are subject to transfer restrictions, in the event that certain potential
shareholders are excluded (such as competitors or any persons outside the family) from the
purchase of shares.

Registered shares are issued in particular by insurance companies or ancillary service
companies. Particularly in security-related sectors, such as in the defense and aerospace
industries, companies are sometimes obliged by law to emit registered shares.

The law generally leaves the choice between a limited company's registered or bearer shares,
exceptions apply to investment companies. These include auditing and accounting firms can
only be a relevant professional institution where shareholders.

The ability to hide behind trustees or banks is eliminated. Holders of registered shares must
disclose their identity through registration in the share register. An intentional or grossly
negligent breach of the notification requirements (concealment) will be punished with a
six-month withdrawal of voting rights after correction of the entry.


The law provides for two forms, namely the simple names share and the special form of
registered shares.

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