What Is a Share Certificate?




What Is a Share Certificate?

A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the number of shares indicated. A share certificate is also referred to as a stock certificate.

Details Mentioned in Share Certificate

All share certificates of a company issued in India must have the following information mentioned on the share certificate.

  • The share certificate should be issued in Form SH-1 or any document that resembles Form SH-1
  • Name of the Company
  • CIN Number of the Company
  • Registered Office of the Company
  • Name of the owners of the shares
  • Folio number of the member
  • Number of shares represented by the share certificate
  • Amount paid on the shares
  • Distinctive number of shares
  • Number of share certificate

Procedure for Issuing Share Certificates

The company requires to provide one certificate to a member for all his shares without payment of any charges. If a shareholder requests more than one certificate, then the company can issue additional shares for payment of Rs.20 per each share certificate.

Must issue share certificate at allotment or subscription or at the time of Incorporation. A Board resolution should be passed in the Board Meeting for the issue of the Certificate. The prepared share certificates must conform to the standards mentioned above and should be issued under the signature of two Directors or Company Secretary or any other person authorized by the Board of Directors.

The share certificate must be issued from the registered office of the Company and payment of stamp duty on the issue of share certificate must be made as per the Stamp Act of the State. After issuing the share certificate, must enter the details of share certificates into to Register of members maintained under Section 88 of the Companies Act, 2013. Along with Name to who issued and date of the issue.

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