Bearer shareholder ? Registered shareholder ?
To purchase shares, you need to hold a securities account with your bank. By going about it in this way, you will hold shares in « bearer » form. Two other methods for holding shares are possible : Managed registered shares and directly registered shares.
- Bearer shares, registered shares : what difference ?
-
Securities may be held in two forms:
- 1. Bearer shares: when the name of the owner is not disclosed to the issuing company. However, they are not anonymous since they appear in the account managed by the financial intermediary.
- 2. Registered shares: when the name of the shareholder appears in the books kept by the issuing company, which makes it easier for the company to communicate with its shareholders. These shares may be in either of two forms:
- "Managed registered" shares: Management of the securities account is entrusted to a financial intermediary. The financial intermediary charges for this service.
- "Directly registered": The securities are entered directly and solely in the books of the issuing company, which is in charge of the administrative management of the shares (usually via its authorised agent).
-
- Advantages and disadvantages of each of the methods for holding shares
-
Advantages Disadvantages Bearer shares - Trading on the stock market is "easy" and immediate
- Freedom of choice of financial intermediary
- Simplified portfolio management (possibility of grouping together all securities)- Payment of custody fees
- No systematic communication by the issuing company
- Need to obtain a certificate for attendance at shareholders' meetingsManaged registered shares - Freedom of choice of financial intermediary
- Simplified portfolio management (possibility of grouping together all securities)
- The issuing company regularly sends various corporate communications, and notice of shareholders' meeting- Payment of custody fees (these may be increased)
- Possibility of longer operational times being required due to the complexity of circulation of information media (statement of registered references - bordereau de références nominatives - BRN) between the issuing company, Euroclear and the custodianDirectly registered shares - No custody fees are payable
- No transfer fee from bearer shares to directly registered shares (L'Oréal will meet the cost up to a maximum of 50 euros, on presentation of the corresponding receipt).
- The company regularly sends various corporate communications, as well as notice of shareholders' meetings
- Preferential brokerage rateImpossibility of having only one securities account in the event of simultaneous management of several securities 
-
- Six good reasons for choosing registered shares
-
- 1. Preferential dividend of +10% for shareholders holding registered shares for at least two years(1).
- 2. Full and personalised information (Shareholder Digest and Letters to Shareholders) sent directly to the shareholder.
- 3. Easier access to the Annual General Meeting: notice to attend sent directly to the shareholder, with the possibility of online voting.
- 4. No custody fees (directly registered shares).
- 5. Dividend sent by cheque or credited to the shareholder’s account, with no delay and no charge.
- 6. Transfer fees met by L’Oréal(2) (directly registered shares).
(1) Not exceeding 0.5% of the share capital per shareholder. From 2012.
(2) Not exceeding €50 and upon presentation of proof of payment.
- Transfer your shares: download a standard form of registering letter (in French)
- Purchase L'Oréal shares: download the contract for stock market services
- Confirm a trade order placed by telephone: download a model of such document (to be sent within 48 hours)
-
- How to hold registered shares?
-
Get your shares directly registered: download a standard form (in French)
Get your shares managed registered: download a standard form
-

