While using a transfer agent is common practice for a public company, it is less so for companies that are private. However, this does not mean that there are no benefits to doing so. In fact, there are quite a few reasons why you would want to use a private company transfer agent.
Keeping Data Secure
While private shareholders and board members certainly need access to sensitive data when they see fit, there is also the matter of the data needing to be kept secure. This responsibility falls to the transfer agent, who makes sure that all data is protected and cannot be accessed by hackers. They are under great scrutiny from both members of the company they work for as well as governmental regulatory agencies, so you can be assured that any private information remains that way.
Governance
While shares of a private company are not listed on a public stock exchange, they are still subject to many of the same governance laws that a public company is. A transfer agent can ensure that your business has recorded or who is a shareholder and any positions of ownership that they may have as well as any taxes that are due if you pay dividends.
Experts
By hiring a private company transfer agent, you are actually hiring an expert in their field. Agents keep track of all changes in the law when it comes to government compliance. If you are interested in learning more about what a transfer agent can do for you, contact Colonial Stock Transfer Company, Inc. at http://www.colonialstock.com/.
