The record date is a specific date set by a corporation to determine which shareholders are eligible to vote in corporate meetings and receive dividends. To be considered a stockholder of record and entitled to these benefits, a person must be registered on the corporation's books by this date. This date is crucial for establishing the rights of shareholders, especially when ownership of shares changes hands.
The record date is primarily used in corporate law, particularly in matters related to shareholder rights and corporate governance. It plays a significant role in the following areas:
Individuals can manage their shareholder status using legal templates and forms from US Legal Forms, which can help ensure they are properly registered by the record date.
Here are a couple of examples of abatement:
Example 1: A corporation declares a dividend on June 1, with a record date of June 15. Only shareholders registered by June 15 will receive the dividend payment.
Example 2: A company holds an annual meeting on July 1. The record date is set for June 20, meaning only those registered as shareholders by that date can vote at the meeting.
Examples of state differences (not exhaustive):
| State | Record Date Regulations |
|---|---|
| California | Allows flexibility in setting record dates, with regulations on notification to shareholders. |
| Delaware | Requires a clear record date to be established in corporate bylaws. |
| New York | Mandates that corporations inform shareholders of the record date in advance. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Ex-Dividend Date | The date on which a stock begins trading without the value of its next dividend payment. | The ex-dividend date is typically set one business day before the record date. |
| Shareholder Meeting Date | The date on which shareholders gather to discuss corporate matters. | The record date determines who can vote at this meeting, while the meeting date is when the meeting occurs. |
If you are a shareholder, ensure you are registered on the corporation's books by the record date to receive dividends or participate in votes. You can use US Legal Forms to find templates for shareholder registration and other related documents. If you have questions or your situation is complex, consider seeking professional legal advice.
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