As an SEC-registered transfer agent, Carta has a responsibility to track contact information for holders and notify them of their outstanding holdings. Carta asks companies to provide their stakeholders' email addresses in order to invite security holders to create a Carta login and electronically sign and accept their securities.
Email addresses help to ensure the correct stakeholder has electronic access to their equity in your company. Email is the primary means for holders to receive notices about company events, equity events, and keeping their contact information up-to-date and accurate.
The email address entered by the issuing company should be for the specific stakeholder even if the stakeholder does not check their email frequently. At a minimum, the email address must be that of an individual who has power-of-attorney to receive legal documents on behalf of the security owner. The company should have verification of the power-of-attorney before sending out any securities or email notifications regarding securities. If the security owner is a minor (under the age of 18), then the email address used should be that of the minor’s legal guardian.