What is a share ledger? – A complete guide for entrepreneurs and investors

Updated: 19 August 2025

Whether you are an entrepreneur, a professional investor, or a legal advisor, you know the importance of keeping accurate records of a company’s transactions. One of the most important governing documents in a company is the register of its ownership — the share ledger. In this article, we explain what a share ledger is, how it is structured, and why using ready-made templates or spreadsheets is not a good idea for this purpose. Instead, a dedicated digital service helps you do things correctly from the start.

What is a share ledger?

A share ledger is a register showing who owns the shares in a company at a given point in time, as well as the historical record of ownership. It is an extremely important document, as it constitutes the proof of ownership in private companies. The core principle of a share ledger is that all shares must be fully traceable. To make this possible, it must contain the following information:

• Share numbers
• Share holdings
• Date of entry
• Personal identity number or organization number of the owner
• Information about previous owners
• Share class

Why is the share ledger important?

The share ledger is not just a formality — it is a central part of the company’s governance and its relationship with shareholders. It determines, among other things, who has voting rights at the general meeting and who is entitled to dividends. It is also a key tool in share transfers, new share issues, and investments, as it provides a clear and traceable history of ownership.

An incomplete or outdated share ledger can lead to legal issues, uncertainty around ownership, and reduced confidence among investors and other stakeholders. In short, a correct and up-to-date share ledger is essential for operating the company efficiently, securely, and in compliance with the law.

The difference between physical, manual, and digital share ledgers

• Physical share ledger (paper-based) — Risk of negligence, fire, or loss of documents.
• Manual digital share ledger (Excel, Google Sheets, etc.) — Easier to update than paper, but still risky and inefficient.
• Digital share ledger — Secure, traceable, cloud-based, and easy to administer.

Why templates or spreadsheets are not a good solution for a share ledger

At first glance, using a ready-made template or an Excel spreadsheet to maintain a share ledger may seem simple and cost-effective. Most companies already have access to these tools, and they require no major investment. However, behind this seemingly convenient solution lie several risks that can become both costly and time-consuming over time.

Risk of errors

One of the biggest challenges is the high risk of mistakes. Spreadsheets are vulnerable to human error — a misplaced row, an incorrect number, or an accidental deletion can have consequences far into the future. As the share ledger grows, complexity increases, and so does the risk that errors spread. Correcting inaccuracies in ownership history after the fact is often time-consuming and frustrating, and in the worst case may lead to decisions being made on incorrect information.

Security shortcomings

Spreadsheets lack the robust protection offered by dedicated digital tools, making them more vulnerable to data breaches and cyberattacks. Since the share ledger contains sensitive financial and personal information, it is crucial that it is stored securely — something traditional spreadsheets were never designed to do.

A time-consuming workload

Manually updating a share ledger in Excel can quickly become a heavy administrative burden, especially for companies with many shareholders or frequent changes. The time spent chasing information, double-checking figures, and ensuring everything is correct is time that could instead be used to drive the business forward.

Lower confidence from stakeholders

The choice of tool also affects how the company is perceived. A share ledger in Excel offers neither the traceability required to ensure transparency nor the ability for shareholders to access up-to-date information themselves, for example through an ownership account. This can create uncertainty and reduce confidence among investors and other stakeholders.

In summary, a template or spreadsheet may appear to be a shortcut — but in practice, it risks becoming a detour filled with unnecessary obstacles, errors, and security risks.

The benefits of a dedicated digital share ledger

Using a specialized digital service for the company’s share ledger provides several clear advantages over Excel and templates:

• Designed for share ledgers — All necessary functionality is built in, making the process both simple and secure.
• Lower risk of errors — Built-in controls reduce mistakes, and full traceability makes it easy to correct any issues.
• Higher security — Encryption and access controls protect sensitive ownership information from intrusion.
• Time-saving — Automated updates free up time for more important tasks.
• Increased confidence — A correct and transparent share ledger strengthens the company’s credibility with investors and stakeholders.

Conclusion: With a dedicated tool, you get safer, more efficient, and more professional management of the company’s ownership register.

How is a digital share ledger structured?

A digital share ledger is a secure, centralized database where all information about the company’s shares and owners is collected. It is usually hosted in a cloud-based system accessible only to authorized users and updated in real time so that ownership changes are always correctly recorded. Often, it also includes features for report exports, transaction management, and support for legal processes such as new share issues and share transfers.

How to choose the right digital share ledger

When selecting a digital tool, consider the following:

• Security — Encryption and two-factor authentication
• Traceability — A full history of all changes
• Ease of use — Simple navigation and a clear overview
• Support — Access to help with legal questions

Keep in mind: When choosing a provider of a digital share ledger, it is important to carefully review security. Make sure the service meets high standards for both data protection and data integrity. There are providers on the market that fall short in these areas — for example, by lacking adequate protection for personal data or allowing users to register incorrect information without warnings. A good tip is also to look into how many other companies use the platform. A broad user base can be a sign that the service is both reliable and well proven.

Frequently asked questions about digital share ledgers

Is a digital share ledger legal in Sweden?

Yes. A digital share ledger is fully approved as long as it meets the requirements of the Swedish Companies Act regarding content, traceability, and secure handling of information.

Can you switch from Excel to a digital share ledger?

Absolutely. Most modern tools offer smooth import functions that make it easy to move information from spreadsheets to a secure digital solution.

Does historical data have to be retained?

Yes. All changes in ownership, including previous owners and transactions, must be documented and easily traceable. This is important both from a legal perspective and to ensure transparency for shareholders and investors.

A digital share ledger therefore not only provides legal security — it also makes administration more efficient, strengthens confidence in the company, and gives full control over ownership history.

Want to learn more about how our solution can help your company?

Contact us and we’ll tell you more about our digital share ledger and how we can make the transition smooth!