Digital shares and safekeeping of share certificates

Want to optimize the handling of owner shares? Why not? A professional approach to handling owner shares offers opportunities for the further development of the company. Credit Suisse offers you appropriate services.

Manage your shareholder base professionally

Do you know the ownership details of your company? If not, it's high time. A regular review is worthwhile, not only with regard to legislative amendments.

 

Unclear ownership structures can impede the long-term success of a company and pose risks with company succession, the sale of the company, or when capital is needed. This is due to such factors as insufficient tax compliance, uncertainty about corporate actions, and gaps in shareholder structures. 

 

Corporate housekeeping enables the professional handling of shares, thanks to the safekeeping of share certificates and the creation of book-entry securities. This lays the foundation for further development of the company while providing new strategic options.

Services for your shareholders

Benefit from the corporate housekeeping services of Credit Suisse:

Get sound advice on matters relating to the shareholder base

Entrepreneurs are usually fully involved in day-to-day business. This leaves little time to take care of administrative issues relating to owner shares. Our qualified advisory service in the context of corporate housekeeping will assist you with questions such as: 

  • How can the ownership percentages of the shares be ensured at all times?

  • How can owner shares be kept securely and transferred efficiently?

  • What opportunities do modern solutions offer me as a company owner?

 

The key to answering these questions is a systematic advisory process. Your client advisor will manage this process and involve the relevant experts for you as required.

Safekeeping of share certificates

The safekeeping of share certificates at a bank increases security for shareholders and guarantees that the company is ready for future transactions and banking business. Control access rights quite simply: In an emergency, the proven processes will apply. The shares are shown in the safekeeping account at all times to verify the ownership situation.

 

There are many advantages of holding owner shares in shareholders' personal securities safekeeping accounts:

  • Flexible and easy to use

  • Professional reporting for documentation of ownership for authorities and other parties

  • Professional image when dealing with third parties (shareholders, financing partners, employees)

  • Ideal conditions for financing and other transactions

 

In short, the professional management of share certificates builds trust.

Who is the safekeeping of share certificates suitable for?

The solution is ideal particularly for group companies and private individuals with a small number of shareholders. This applies to processes such as preparing for restructuring, as may happen in the event of mergers, acquisitions, and financing. Financing processes can also benefit from share certificates.

Digital shares – creation of book-entry securities

Issuing shares in the form of book-entry securities offers the highest level of professionalism. Digital shares make corporate actions seamless while providing maximum flexibility for handling the shares. For instance, the transfer of shares between owners in cases of divorce, inheritance, management participation or buyouts can then easily be carried out via bank order.

 

Handling share certificates can become complicated as the number of shareholders grows. If you create digital shares, your shares are integrated into the SIX/SIS securities system, thus achieving maximum professionalization of your shareholder base. The process for creating book-entry securities primarily involves the following:

  • Dematerialization of physical share certificates

  • Assumption of a paying agent mandate by Credit Suisse

  • Introduction of an electronic share register

  • Book-entry securities are booked into an individual securities safekeeping account

Who is the creation of digital shares suitable for?

This solution is beneficial for high-growth companies and those with multiple stakeholders (five or more parties). Digital shares are most useful for processes relating to corporate succession, employee participations, the search for investors, and M&A transactions.

Corporate housekeeping lays the foundation for strategic options

Professionalization of the structures for owner shares creates various strategic options and an excellent starting point for transfers of ownership, as in the following cases:

  • Admission of additional investors, including a future IPO 

  • M&A transactions (mergers & acquisitions) 

  • Employee participation 

  • Succession solutions 

  • Inheritance

Prepare your company for these scenarios at an early stage.

Personal advice

Do you have any questions, or would you like advice on share certificates or digital shares? We are here to help. Contact us and schedule a personal consultation with our experts.