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A Share Certificate is a written document which serves as a legal proof of a shareholder's ownership of shares in the company. The share certificate is often issued by companies to shareholders after an allotment has been made or after a transfer or transmission of shares.
This document includes the name of the company and registration number of the company whose shares is being issued, the certificate number, the particulars of the holder(s) of the shares, the class(es) of shares being issued, date of issue, the amount paid on each share etc.
This document can only be used by the following type of companies:
Note that this document can not be used by a company limited by guarantee as the company does not have shares.
How to use this document
This document is used when a company issues new shares, when shares have been transferred to another or a share certificate previously issued is lost or defaced. The law provides that share certificate must be issued within 2 months after new shares have been allotted or within 3 months after shares have been transferred to another.
After filling this form, the document must be printed on a thick paper (the papers usually used for printing certificates), the common seal of the company must be affixed on the document and one director and one secretary of the company must sign this document. The certificate must be issued to the named holder of the shares. The company may keep a soft or hard copy of this document for record purposes.
Note that the company must also enter the shareholder(s) name(s) in the register of members of the company.
The Companies and Allied Matters Act is applicable to this document.
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