I don't believe that's what it is referring to. You'll see that "shareholders of record" language in any dividend announcement. It is just referring to when the person bought the stock.
the key is not the phrase but the r/s. by eliminating anyone with 110 shares or less from the record by way of a cash settlement, they will get the number of holders down to what they need inorder to quit filing. intent is key.
http://invest-faq.com/cbc/stock-dividends.html In order to be a shareholder of record on the RECORD DATE you must own the shares on that date (when the books close for that day). Since virtually all stock trades by brokers on exchanges are settled in 3 (business) days, you must buy the shares at least 3 days before the RECORD DATE in order to be the shareholder of record on the RECORD DATE. So the (RECORD DATE - 3 days) is the day that the shareholder of record needs to own the stock to collect the dividend. He can sell it the very next day and still get the dividend.
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