Issuer accounting

All public limited liability companies are required to keep two levels of securities accounting. This means that the securities must be registered and accounted for with the NASDAQ CSD SE (central securities depository) and a firm that provides securities accounting services.

After the company (the issuer) has signed the issuer’s proxy agreement with Šiaulių Bankas AB, we represent the issuer in the central depository, where we open a securities registration account – the company’s securities are assigned an international ISIN code.

For securities to be registered with the central depositary, all security holders must have entered into personal investment service agreements, and the issued securities are transferred to and held in their personal securities accounts opened with issuer accounting firms.

Before opening an account with a central depository, the company must complete the mandatory know-your-customer procedure, i.e., provide documentation about the company and the beneficial owners.

The issuer’s representative prepares and provides the company with a list of the holders of its securities held by various issuer accounting firms and otherwise represents the company before the central depository, according to the needs of the company.

For private limited liability companies, two-level securities accounting is not compulsory but is often chosen if the company is invested in by funds wishing to hold their securities with their own securities accounting firm (depositary) or for other reasons.

The accounting of shares in private limited liability companies can also be carried out at a single level, by a company only. The central depository service is optional.

Under a single-level issuer accounting agreement signed with the manager of the private limited liability company, securities accounts are opened to the company’s security holders and statements are provided to the company’s manager. Security holders do not have to sign the agreements themselves.

The agreement includes a monthly service fee and a transaction registration fee, which are individual and depend on the volume of services. There are no other fees. No ISIN is assigned to the securities and the shares cannot be transferred to security holders’ accounts with other issuer accounting firms.