The world of investing is full of important terms, but few are as vital as ‘holder of record’. Whether you’re a seasoned trader or a newcomer to the ASX, knowing what it means to be a holder of record can have a real impact on your portfolio—especially as new policies and digital platforms reshape the Australian investment landscape in 2025.
What Does ‘Holder of Record’ Mean in 2025?
Simply put, the holder of record is the official owner of a security (like shares) according to the company’s or share registry’s books on a specific date. This status determines who is entitled to dividends, voting rights, and other benefits during corporate actions. In Australia, this is typically managed by share registries such as Computershare or Link Market Services.
For example, if a company announces a dividend with a record date of 10 June 2025, only those listed as holders of record on that date will receive the payment—even if you bought the shares a day later. With the Australian Securities Exchange (ASX) moving towards T+1 settlement (where trades settle one business day after the transaction) from March 2025, timing your trades around record dates will become even more critical.
Why the Holder of Record Matters: Dividends, Voting, and Corporate Actions
- Dividends: Only the holder of record on the record date receives dividend payments. With franking credits and dividend imputation still key tax features in 2025, missing a record date could impact your after-tax returns.
- Voting Rights: When companies hold annual general meetings or special votes, only holders of record can vote. This matters for influencing company direction, especially with the rise of ESG (Environmental, Social, and Governance) activism among Australian investors.
- Corporate Actions: Share splits, rights issues, and takeovers are all processed according to who is the holder of record. For example, if a company issues bonus shares, only those on record on the relevant date receive them.
Case in point: In May 2025, a major ASX-listed bank announced a special dividend with a record date just two days after its ex-dividend date. Investors who failed to understand the T+1 settlement rules missed out, sparking a surge in online queries about record dates and entitlements.
Policy Updates and Digital Innovations Impacting Holders of Record
The landscape for record keeping and ownership rights is evolving rapidly. Here’s what’s new for 2025:
- T+1 Settlement: The move to T+1 means you’ll need to buy shares even earlier to qualify as a holder of record for dividends and corporate actions. Double-check settlement times, especially if you’re trading close to key dates.
- Digital Shareholding: With more Australians holding shares via online brokers and custodial platforms, there’s an added layer of complexity. In many cases, your broker is the legal holder of record, while you are the beneficial owner. This can affect your ability to vote or receive certain offers directly.
- ASIC and Registry Reforms: The Australian Securities and Investments Commission (ASIC) has been pushing for clearer disclosure around beneficial versus registered ownership. In 2025, new rules require registries to send notifications to beneficial owners for major corporate actions, even if their name isn’t on the register.
Real-world example: If you use a popular micro-investing app, check whether you’re the holder of record or if the app’s custodian is. This will affect your eligibility for shareholder perks and direct communications from companies.
Practical Tips for Australian Investors
- Know Your Platform: If you invest through a broker or app, confirm whether you’re the registered holder or a beneficial owner.
- Watch Key Dates: Always check ex-dividend and record dates before buying or selling shares, especially with the T+1 settlement cycle.
- Update Your Details: Ensure your contact and banking details are up to date with share registries to avoid missing payments or communications.
- Understand Your Rights: If you want to vote at AGMs or participate in rights issues, clarify your rights with your broker or platform—especially if you’re not the direct holder of record.
Conclusion
The concept of holder of record is more than just paperwork—it’s the key to unlocking dividends, exercising shareholder rights, and making the most of your investments. As the ASX and regulators roll out faster settlements and digital reforms in 2025, staying informed about your status as a holder of record can help you avoid costly mistakes and seize new opportunities.
