Hiring an outside company to handle your cap table tracking ensures that you get specialists in the field who can help create and maintain positive relationships for your company with shareholders. Using a firm that specializes in these services ensures you remain in compliance during these challenging times.
What a Cap Tracking Management Firm Can Do for Your Company
Outsourcing some of the regulatory and administrative duties of your company will help free up your employees to handle their main duties. Corporate actions such as mergers and acquisitions, divestitures, stock split, IPOs, and more can all be handled by an outside firm.
One duty of publicly held companies is paying out dividends. Using an outside firm to act as a dividend-paying agent and handle the related paperwork can make the process much more straightforward and ensure that the necessary 1099s and withholding are properly accounted for.
Using an outside firm for escrow services removes liability from both sides of the transaction. Whether you are looking at a corporate activity or a transaction between shareholders, an escrow service provides the discrete service needed.
You may also want to consider outsourcing your company’s mailings to its shareholders and the media. This includes communications such as shareholder letters, proxy documents, and news releases. If your company holds proxy meetings, these can be outsourced as well. Outsourcing transactional recordkeeping and shareholder accounting is a great way to maintain shareholder records and account information while keeping a hands-off approach.
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