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A share certificate is a document which a company issues when a person (or another shareholding entity) acquires shares in the company.
The share certificate will set out all of the pertinent information about the shareholder and about the shares which have been purchased. It will serve as legal proof that the shareholder actually owns the shares in the company.
The share certificate will record the full name and address of the shareholder, and will set out the number of shares held, the class of shares, the amount paid per share, and any amount per share which is still unpaid at the time that the share certificate is issued.
How to use this document
Use this document when a person (or another shareholding entity) purchases shares in a company.
Enter all of the relevant information when prompted. This document serves as legal proof that the shareholder owns the shares and that the shareholder paid the amount set out in the document. Therefore, it is important that all information is accurate.
Once the document has been prepared, a copy may be provided to the shareholder who has purchased the shares. A copy may also be kept with the company's records.
Generally, section 1071H of the Corporations Act 2001 (Commonwealth) requires that when a company issues shares, it issues a share certificate within two months.
When a company issues shares, it is required to notify the Australian Securities and Investment Commission within 28 days.
The Corporations Act 2001 (Commonwealth) applies to company matters in Australia, including the issuing of share certificates.
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