A share register is important for companies for several reasons and fulfills various functions related to managing the shareholder structure and complying with legal requirements. Some of the reasons why companies need a share register are Compliance with legal requirements: In many jurisdictions, companies are required by law to maintain a share register. This is for transparency and compliance purposes. Shareholder identification: The share register enables a company to obtain clear and accurate information about the identity of its shareholders, including names, addresses and shares held. Exercise of voting rights: The share register enables the company to track the voting rights of shareholders. This is particularly important for voting at general meetings. Distribution of dividends: The share register is crucial for the distribution of dividends. It shows which shareholders are entitled to receive dividends. Control of the capital structure: The company can monitor the capital structure using the share register, including the distribution of ordinary and preference shares and any changes due to capital increases or decreases. Transparency and governance: A well-managed share register promotes corporate governance and creates transparency. This is important for the trust of shareholders and other interest groups. Auditability: The share register serves as a source for audits by external auditors, tax authorities or other supervisory authorities. Prevention of share counterfeiting: An accurate share register helps prevent share counterfeiting by providing clear evidence of the legal ownership and transfer of shares. Protection against unauthorized transfers: A share register protects the company from unauthorized transfers of shares by maintaining clear records of rightful ownership.