06 June 2024
Editor: ET
Maintaining accurate company registers is a crucial part of corporate governance for businesses in Singapore. One key aspect of this is the Electronic Register of Members (EROM), which tracks changes in share ownership and shareholder particulars.
Here’s a detailed guide on how to manage your company’s EROM with insights from Expede.com.sg.
What is the Electronic Register of Members (EROM)?
The Electronic Register of Members (EROM) is an official record maintained by the Accounting and Corporate Regulatory Authority (ACRA) that details the ownership of shares in a company and the particulars of its shareholders. This register is updated electronically via BizFile+, ACRA’s online filing and information retrieval system.
Importance of Maintaining an Accurate EROM
Maintaining an accurate EROM ensures transparency and compliance with Singapore’s corporate regulations. It helps in:
Facilitating Due Diligence: Accurate records aid potential investors and partners in assessing the company's structure and stability.
Legal Compliance: Ensures that the company complies with the Companies Act and other relevant regulations.
Smooth Operations: Helps in the smooth execution of corporate actions such as dividends distribution and shareholder meetings.
Updating the EROM via BizFile+
When there are changes to share ownership or shareholder particulars, it is mandatory to update ACRA via BizFile+. The following transactions should be used for different types of changes:
Return of Allotment of Shares
Use this transaction for the fresh allotment of shares. This involves issuing new shares to existing or new shareholders.
Transfer of Shares/Update List of Members
This transaction is used when there is a transfer of shares between shareholders. It ensures that the EROM reflects the latest ownership structure.
Change in Particulars of Shareholders
This transaction should be filed if there is any change in a shareholder’s personal particulars, such as name, address, or identification number.
Effective Date of Entry or Cessation
The date of filing these transactions on BizFile+ will be taken as the effective date of entry or cessation of a person as a member of the company. It is essential to ensure that these updates are made promptly to maintain accurate and up-to-date records.
Step-by-Step Guide to Filing Changes
Log into BizFile+: Use your SingPass to access BizFile+.
Select the Appropriate Transaction: Depending on the type of change (allotment, transfer, or update of particulars), select the corresponding transaction.
Fill in the Required Details: Enter all necessary information accurately.
Submit the Transaction: Review the information and submit the transaction.
Confirmation: After submission, BizFile+ will automatically update the EROM.
Benefits of an Accurate EROM
Enhanced Transparency: Clear and accurate records enhance the company’s transparency and credibility.
Regulatory Compliance: Regular updates ensure that the company remains compliant with ACRA regulations.
Efficient Management: Simplifies the management of shareholder information and corporate actions.
For more detailed guidance on managing shares and updating share information, read our guide on Shares and Updating Share Information.
Maintaining an accurate Electronic Register of Members is vital for the transparency and smooth functioning of your business in Singapore. By keeping your EROM up-to-date, you ensure compliance with legal requirements and facilitate better corporate governance.
For expert assistance in managing your company registers and other corporate services, visit Expede.com.sg.
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