A CSD-registered company (Swe. avstämningsbolag) is a limited company that has registered its shares at a Central Securities Depository. In short, it means that we take over the responsibility for the register of shareholders.
Some common reasons why companies become CSD-registered companies include the following:
- The company plans to be listed on the stock exchange – all stock exchange listed in Sweden companies must in fact be CSD-registered companies.
- The company wants to make it easier to raise capital.
- It is becoming too time-consuming for the company to update its register of shareholders by itself.
When we will take over the management of the register of shareholders from the company's board of directors, we do so in accordance with a number of provisions in the Swedish Companies Act.
In practice, this means that the company's shares and their holders will be registered in our securities system and we ensure that the register of shareholders is in order when we take it over.
Our management of the register of shareholders creates credibility and security concerning how the company's shares are managed, both for regulated marketplaces such as stock exchanges and for investors.
The difference between CSD-registered companies and other companies consists of who is responsible for the company's register of shareholders.
In a limited company that is not affiliated to Euroclear Sweden, the register of shareholders is managed by the company’s board of directors. The board of directors is responsible for ensuring that the register of shareholders is updated as soon as the company's shares change owner or a holder changes address.
A CSD-registered company is a company that has introduced a provision in its articles of association stating that the shares must be registered at a Central Securities Depository. In a CSD-registered company, the register of shareholders is also referred to as a CSD register (Swe. avstämningsregister). The responsibility for the register of shareholders then passes from the company's board of directors to us and we are responsible for keeping the register of shareholders up to date.
A limited company becomes a CSD-registered when its shares are registered with us.
Part of the process consists of your company introducing what is referred to as a record date provision in its articles of association, which must also be registered with the Swedish Companies Registration Office.