Legal Definitions - date of record

Date of Record

The date of record, often referred to as the record date, is a specific calendar date established by a company or organization to determine which individuals are eligible to receive certain rights, benefits, or communications. Only those individuals who are officially listed as owners, shareholders, or members on the entity's records as of this particular date will be entitled to the specified privilege. It serves as a cutoff point, ensuring clarity on who qualifies for an upcoming event, such as receiving a dividend payment, voting in a shareholder meeting, or receiving specific corporate notices.

• Example 1: Stock Dividends

  A publicly traded company, "Tech Innovations Inc.," announces that it will pay a quarterly dividend to its shareholders. To determine who qualifies for this payment, the company sets a date of record for October 15th. This means that only individuals who are officially registered as shareholders of Tech Innovations Inc. on or before October 15th will receive the dividend payment. If an investor purchases shares on October 16th, they will not be eligible for that particular dividend, even though they are now a shareholder.

• Example 2: Shareholder Voting Rights

  "Global Energy Corp." is holding its annual general meeting (AGM) where shareholders will vote on important matters, including the election of new board members. The company establishes a date of record of May 1st for voting eligibility. Only individuals who are officially listed as shareholders of Global Energy Corp. in the company's records as of May 1st will be entitled to cast votes at the AGM. Any shares bought or sold after May 1st will not affect the voting rights for that specific meeting.

• Example 3: Association Membership Benefits

  The "National Association of Educators" decides to send out a special commemorative journal to all its active members. To manage this distribution, the association sets a date of record for September 30th. This means that only members whose dues are current and who are officially listed as active members in the association's database on or before September 30th will receive the special journal. Members who renew their membership or join after September 30th will not be included in this particular mailing.