There are many big companies in the world. Companies would be able to perform only with the support of their employees. Employees are the support system for an organization. Employees work hard and render their services to the organization. There are many big companies who have a very big employee base. Some employers ensure to provide lot of facilities and benefits for their employees as they believe that only if their employees are happy and if they are taken care then only they would be able to perform nicely and be a part of the growth of the organization. As the company grows the count of employees also increases and it becomes difficult for the employers to manage all the functions related to pay roll and so on.
There are few companies who believe in giving shares of the company to their employees. Hence there are employee share scheme where employees can invest money from their salary and own some part of the company shares. In few cases the employers give the companies’ shares during appraisals. They give bonus to the employees in the form of shares. This way both the employer and employee are benefited.One challenge of having employee equity plans is that it becomes very complicated maintaining the employee share plans. As the number of employees increases and as the employees holding in the company shares increases it is important to maintain the records. It is not possible for the company to maintain all these woks and also handle the day to day business.
Here the share registrar services come into picture. There are many registrar service providers who maintain the track record of shareholders on behalf of the company. They also assist the company in issuing the share certificates,maintaining and recording changes in share ownership and managing corporate actions and dividend payments.
Let’s see why companies hire third parties to maintain their accounts:
- Because they are experts and professionals in handling accounts.
- They are experience in maintain the books of records.
- Not all the activities of the company can be managed by one team hence they outsource some complicated work to third parties.
- They keep the companies information confidential.
- They customize their services as per the companies requirement.
- In case there are many other services which has to be provided the third parities collaborate with other experts and ensure that the company is provided with the best quality of services.
- Complicated and difficult situations also can be handled by third parties.
Conclusion: Employers would like to recognize their employees and hence would give them the shares of the companies instead of cash. Employees may also would like to invest personally in the companies’ shares and they may get the shares of the company at a lesser price when compared to a common man.