- Paper share certificates are due to be abolished
- You can maintain many of the rights when holding shares electronically on certain platforms
- Trading shares electronically is cheaper and faster
Paper share certificates are scheduled for abolition and, although no date has been set, the government’s digitisation task force is expected to deliver its final recommendations and an implementation plan this spring. So if you hold any of your listed securities, such as single-company shares or investment trusts, via some of the estimated 10mn paper share certificates, you should take steps now to ensure that you maintain your shareholder rights when this happens.
If you hold shares in a company via a paper certificate you are the legal owner of the shares and your name is on that company’s register. This means that you receive correspondence from the company, can attend meetings such as the annual general meeting (AGM), take part in company votes, ask the company questions and receive dividends directly rather than via a go-between.