A share certificate is a piece of document that serves an evidence for the ownership of the shareholder in a company. After the incorporation is done, the certificate of the share has to be issued on the shareholders of the company by the company on the money receipt of the capital. If there is any addition of the shares in the future, then those shares need an issuance of the certificate as well. Continue reading if you are interested to know more about this certificate and the process of application for the issue.
Procedure for the Issue of the Share Certificate
The updated notification of the MCA along with the process of applying for the issue of the certificated is given in the “Notification for Amendment” in the Schedule I of the 2013 Companies Act. That update was made last on 4th April of 2018. The copy of the notification can be found below. Simply scroll down.
Follow the process and the conditions given below in order to learn how to issue the certificate of the share. According to the notification mentioned above:
- Details about the share has to be specified in the certificate
- The amount of the related paid up capital is to be added to the details
- The certificate must be signed by at least two Directors from the company. Alternatively, a Director and the company secretary can jointly sign the certificate.
- The signature of the Director can be collected in many ways. It can be collected in the following methods.
- In the form of a digital signature
- Printed through machineries or equipment
- Other mechanical forms like the engraving in metal can also be used
- But note that the signature cannot be taken with the help of a simple rubber stamp manually.
- A witness who has already signed the share certificate must be present at the time placing the common seal on the certificate. But this is no longer in practice and the seal affixation part is optional.
Learn more about the Process of the Share Transfer
Format of the Certificate of Share
For the purpose of reference, an image of the certificate of the share is given below. Scroll down to view it. The following information are to put in there as asked.
- The name of the company at the top
- The office address which is registered at the top
- The total value of each of the share
- The amount of the paid up capital
- Name of the shareholder
- Number of the shares that has been issued
These are to be filled in properly in order to issue the share certificate.
For further information refer Company Vakil experts.