Write short notes on Share Certificate.

Question: Write short notes on Share Certificate.

Find the question and answer of Company Law only on Legal Bites. [Write short notes on Share Certificate.]

Answer

A Share Certificate is a document which is issued by a company to the allottee or transferee of shares under its common seal which specifies the shares held by any member. It is evidence that proves the title of the allottee or transferee of shares.

According to Section 46(1) of the Companies Act, 2013

"Share Certificate is a certificate, issued under the common seal, if any, of the company, or signed by two directors or by a director and the company secretary, wherever a company has appointed a company secretary, specifying the shares held by any person, shall be prima facie evidence of the title of the person to such shares."

Contents of a Share Certificate

A Share Certificate consists of the followings:

• The name of the holder of shares.
• The address of shareholder.
• The number of shares held by him.
• The name of the registered office of the company
• The address of the registered office of the company.
• The distinctive number of the share certificate.
• The class of shares.
• The nominal value per share.
• Amount paid up per share.
• The day and date of issue of share certificate.
• The impression of the common seal of the company.
• Signature of two directors and secretary of the company.
• Name of transferor.
• Name of transferee.
• Date of share transfer.
• Signature of authorised signatory.

Every share certificate shall be issued under the common seal of the company to be affixed in the presence of at least two directors and the secretary of the company. Also, all these persons must sign the share certificate.

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