The Importance of Notice of Record Date for Shareholders
What is a Notice of Record Date? A Notice of Record Date is a notification from a company to its shareholders that they must own shares by a certain date in order to be eligible for certain corporate events, such as receiving dividends or voting on company matters. The record date is set by the company's board of directors and is typically announced in a press release or on the company's website. Why is a Notice of Record Date Important? The Notice of Record Date is important because it helps the company determine who its shareholders are and who is eligible to participate in corporate events. By knowing who its shareholders are, the company can accurately calculate the number of shares outstanding and determine how much money it needs to pay out in dividends. The company can also use the Notice of Record Date to determine who is eligible to vote on company matters, such as electing directors or approving mergers and acquisitions. What Happens If I Don't Own Shares