Share Certificate As per Companies act 2013

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Description

Share Certificate:

A share Certificate is a document issued by company evidencing that the person named in the certificate is owner of number shares of Company as specified in the Certificate.

TIME PERIOD FOR ISSUE OF SHARE CERTIFICATES:

  • In case of Incorporation: With in a period of 2 (Two) Month from the date of Incorporation to the subscriber of Memorandum.
  • In case of Allotment: With in a period of 2 (Two) Month from the date of allotment of shares.
  • In case of Transfer: With in a period of 1 (One) Month from the date of receipt of instrument of Transfer by the Company

NOMINAL VALUE OF SHARES:

  • Shares not listed on any stock exchange: A share can be of any nominal value e.g. Rs. 1, Rs. 10, Rs. 100, Rs. 1000.
  • Shares listed on any stock exchange: Share listed in any stock exchange but not in dematerialized form should be only of Rs. 10/- face value.
  • Debenture listed on any stock exchange: Debenture listed in any stock exchange but not in dematerialized form should be only of Rs. 100/- face value

REQUIREMENT FOR ISSUE OSHARE CERTIFICATE:

  • A Company shall provide one certificate to a member for all his shares without payment of any charges.
  • If a Shareholder want more than one Certificate: If a shareholder want more than one certificate for one or more of shares than company may issue several certificates, upon payment of Rs. 20/- each certificate after the first.
  • If Shares hold Jointly by several person: The Company shall not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several join holders shall be sufficient delivery to all such holders.

SHARE CERTIFICATE SHALL SPECIFY FOLLOWINGS MATTER:

  • Share Certificate shall issue in form SH-I or near as possible.
  • Certificate should specifying Name of Member.
  • Every Certificate shall be under the Common Seal of the Company.
  • It shall specify the Number of Shares it relates.
  • It shall specify the amount paid on those Shares.
  • It shall specify the Distinctive No. of Shares.
  • It shall specify the Number of Share Certificate.
  • It shall specify the Folio No. of Member.
  • Name of Company, CIN of Company and Registered Office Address of the Company.

REQUIREMENT FOR ISSUE OF SHARE CERTIFICATE:

  • There should be an allotment or Subscription at the time of Incorporation.
  • A Board resolution should be passed in the Board Meeting for issue of Certificate.

(Share Certificate can be issued only under authority of Board of Directors by a Board Resolution.)

  • Share Certificate shall specify the matter mention in above.
  • Share Certificate should be issue under the signature of Two Director and

(One of the Directors should be person other than Managing or Whole Time Director, if such person is available on the Board of Directors.

  • Company Secretary, if any or any other person authorized by Board of Directors.

(Company Secretary of the Company shall be deemed to be authorized to sign the Share Certificates)

Note:

  • Share Certificate Must be ‘Issued’ from registered office only.
  • After issue of Share Certificate, Company should pay stamp duty on issue of share certificate as per Stamp Act of the State.

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