Three Hidden Risks for Boards and CoSecs in Your Share Registry

Comparing a legacy share registry with a modern one is like comparing VHS vs. streaming. You can still watch a film on VHS, but you’re missing out on all the benefits of an instant, richer, and more connected experience. You are also exposing your organisation to needless risk.  

For years, the share registry was seen as a simple, necessary administrative function; a box to be ticked for compliance and governance. That era is over. Amidst fast-moving regulatory changes and rising investor expectations, progressive companies are discovering their registry can be a powerful tool to drive and strengthen strategic governance frameworks while accelerating payments, facilitating efficient capital raisings, and improving overall operations. 

This evolution raises a critical question for every board and company secretary: is your registry holding you back? Or is it a strategic asset for the future? Below are three hidden risks that may be lurking in your legacy system.  

Risk 1: The strategic blind spot of 24-hour-old data  

In today’s market, speed is paramount. Capital raising cycles now occur in weeks rather than months, and the expectation for T+1 or even same-day settlement is growing. In this environment, making critical decisions based on outdated information is a significant gamble.  

Yet, many legacy registry systems provide data that is not real time. This delay creates a dangerous strategic blind spot. When the board needs to make a timely decision, or the finance team is managing a complex capital raise, working with old data means you're always one step behind. This discrepancy doesn't just slow you down; it undermines trust in the data itself. If two systems produce different reports at the same time, it becomes nearly impossible to determine which version is accurate without time-consuming manual intervention.  

Risk 2: The security nightmare of fragmented systems  

Legacy registry platforms often consist of fragmented systems stitched together over time, with inconsistent integration and no centralised security control. This patchwork architecture, often the result of acquisitions rather than deliberate design, creates a wide area of vulnerability. 

Each point of integration is a potential vulnerability. The lack of centralised security makes it difficult to detect or respond to threats, creating governance blind spots. These are not theoretical risks.  

As we saw in late 2024, criminal syndicates are actively exploiting these very gaps across the financial sector. An outdated registry isn’t just inefficient; it’s a direct threat to your organisation and its shareholder data.  

Risk 3: The slow erosion of shareholder trust  

Your registry is one of the most direct touchpoints you have with your shareholders, and their experience matters. When investors or employees must log into separate platforms for employee share plans, voting, and correspondence, the experience is disjointed and frustrating.  

This friction does more than just annoy your stakeholders. A fragmented experience erodes trust. When interfaces, branding, and even the data itself differ across systems, it can negatively influence shareholder perception of the organisation’s credibility and professionalism. In an era where user experience is paramount, a poor registry experience can sour relationships with the very people you need to engage.  

Making a switch from liability to strategic asset  

Delayed data, security vulnerabilities, and a poor user experience are the hallmarks of a registry that has become a liability. Modernising a share registry in Australia is no longer just about new technology; it’s a strategic imperative. By moving to a unified, real-time, and secure platform, you can transform a compliance necessity into a competitive advantage that protects your organisation and strengthens stakeholder relationships.