SHARE CERTIFICATE
A share certificate is a vital document issued by a company under its common seal, specifying the member's shares and amount paid per share. Learn about the essential details, issuance circumstances, forms (physical and electronic), and allotment processes (physical and electronic). Discover how shares are credited in electronic form through dematerialized accounts. Gain insights into India's two share depository services - NSDL and CDSL.
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Presentation Transcript
MEANING: A share certificate is a document issued by a company under its common seal specifying the number of shares held by a member and the amount paid on each share and evidencing the title of the member to those shares. It is prima facie evidence of the title of a member to the shares specified therein.0
CONTENT: Name and address of the member Share certificate number Number and class of shares Distinctive numbers of the shares included in the certificates. Face value and amount paid on each share. Date of issue of the share certificate A revenue stamp and directors signature
CIRCUMSTANCES UNDER WHICH THE SHARE CERTIFICATE IS ISSUED: At the time of issue of new shares. When the transfer of shares is duly registered. When the transmission of shares is duly registered. When the share warrant is surrendered for cancellation. In exchange of worn out, defaced or mutilated certificate, a duplicate certificate may be issued or when the share certificate is lost, destroyed, or stolen, a duplicate certificate may be issued.
FORMS OF SHARE CERTIFICATE: In Physical form. In Electronic form.
ALLOTMENT OF SHARES IN PHYSICAL FORM When shares are allotted by a company in physical form, he issuing company prepares share certificate and sends the share certificates to allotees to which shares have been allotted.
ALLOTTED OF SHARES IN ELECTRONIC FORM In this form, no shares certificate are sent to the allotted of shares. Instead, the shares allotted are credited to dematerialized (Demat) account of the allottees of shares maintained by them with a depository through depository participants.
IN INDIA TWO SHARE DEPOSITORY National Securities Depository Ltd. (NSDL) Central Depository Services (CDSL)
RULES RELATING TO THE ISSUE OF SHARE CERTIFICATE. Decided by the board of meeting Name, No. and amount of the share. Common seal and two directors signature. Should in printed format. Issuing only for the applicant. Duplicate share certificate issues only when original share certificate is destroyed. Rs. 2 only for the renewal for the share certificate. Surrendered share certificate cancelled immediately. Register of share holder. All the document should kept by the company
