The primary responsibility of a bank acting as registrar of capital stock is to:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Large companies often use a registrar to provide registration services and maintain the stockholder list. The primary responsibility of the registrar is to verify that stock is issued only with proper authorization. Choice "A" is incorrect. The company's board of directors bears responsibility for proper declaration of dividends, not the stock registrar. Choice "B" is incorrect. Since the company's management is responsible for maintaining accurate accounting records, a responsible company employee (not the registrar) would periodically compare the recorded number of shares outstanding (per company records) with the total in the shareholders' subsidiary ledger (per the registrar). Choice "C" is incorrect. A registrar does not have the described responsibility with respect to mergers, acquisitions, and the sale of treasury stock.

The Primary Responsibility of a Bank Acting as Registrar of Capital