A Share Certificate is a document which is produced and issued by the company, it certifies that a person is a registered shareholder of the company who owns the sum of the shares prescribed in the share certificate.
Details that need to be provided in a Share Certificate
Every share certificate issued in India must contain the following details
- Name of the company issuing the certificate
- CIN no. (Corporate Identification Number) of the Company
- Registered office address of the company
- Name of the owners who hold shares
- Folio number of member
- Certificate Number
- Number of shares which is allocated to the Shareholder
- Amount paid on the shares
- Distinct number of shares
- Stamp duty to be paid
- Signature of directors
The procedure followed for issuing the Share Certificate
The company needs to issue the Share Certificate to its Shareholders within 60 days from the date of Receipt of Incorporation of the company.
The Share Certificate needs to be issued to every shareholder of the company.
The Shareholders needs to transfer the amount to the company account based on the number of shares that are allotted by the company
Preparation and Printing Share Certificates
The arrangement of the form of the share certificate is done according to the form suggested by the Articles of Association. The form is printed by the company secretary with all the required details as per the provisions of the governing law. All the details in the share certificate are filled by the secretary with the help of the application register and allotment sheets.
The share certificate has to be signed by two directors of the company. The company’s seal and revenue stamp need to be mandatorily affixed on each of the share certificates.
Share Certificates are issued by a credit union. These certificates are issued for a fixed period of time, most of the time it is for a period between three months and five years. The dividend rates are higher when the term of the share certificate is longer.
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