by any person(s) Prima facie evidence A certificate issued of the - - PowerPoint PPT Presentation

What is share certificate ? Prima facie evidence

• f the title of the

person(s) to such shares Specifies shares held by any person(s) A certificate issued under common seal

• f the Company

Where the shares are held in depository form, the record of the depository is the prima facie evidence of the interest

• f the beneficial owner

Format

1.Every certificate of share or shares shall be in Form No. SH.1 or as near thereto as possible

• 2. It shall specify the:-
• name(s) of the person(s) to

whom it is issued

• the shares to which it relates
• the amount paid-up thereon

Issue of certificate

Every share certificate shall be issue under the common seal affixed in presence of and signed by :

• two directors duly authorized

by the Board/Commitee (one shall be a person other than WTD/MD, if appointed) and

• Secretary
• r

any

• ther

person authorized by the board

Issue of certificate (one

person Company)

• Every share certificate shall

be issue under the common seal affixed in presence of and signed by :-

• one director or a persona

authorized by the Board of Directors of the company

• Secretary
• r

any

• ther

person authorized by the board

Particulars of every share certificate shall be entered into registers of members maintained in Form No.MGT-1.

• In exchange for those shares which are

subdivided or consolidated; or

• In replacement of those which are defaced,

mutilated torn or old , decrepit, worn out; or

• Where the pages on the reverse for recording

have been duly utilized;

Share certificate shall not be issued by a Company Unless the certificate in lieu of which it is issued is surrendered to the company

• Time

period for issuing duplicate share certificate from the date of submission of complete documents :

• For Unlisted Companies = Within 3 months
• For Listed Companies = Within 15 days

Time Limit to issue

• Every duplicate share certificate

shall state on its face that it is “duplicate issued in lieu of share certificate No….”

• Prior

consent

• f

Board is required

• Board may charge maximum fee
• f Rs. 50 per certificate.
• Entries in the register maintained

in Form No. SH-2 to be authenticated by the Company secretary or a person authorized by the board for the purpose.

Conditions for issue

• 1. The following persons shall be responsible for the maintenance, preservation and safe

custody of all books and documents namely:-

 the committee of the Board, if so authorized by the Board  the company secretary;  where the company has no company secretary a Director specifically authorized by the Board

for such purpose.

• 2. All blank forms to be used for issue of share certificates shall be printed or related

documents shall be printed only on the authority of the Board

• 3. All the documents related to share certificate shall be preserved for a period of 30

years and in case of disputes , shall be preserved permanently

• 4. All certificates surrendered to company shall be defaced and may be destroyed after the

expiry of 3 years from the date of surrender

If a company with intent to defraud issues a duplicate certificate of shares , the company shall be punishable with :

 Fine not less than 5 times of the face value of the shares involved but

which ay extend to 10 times of such face value ; or

 Rs. 10 cores whichever is higher; and  Every officer of the Company who is in default shall be liable for action

under section 447 which deals with fraud.

Thank you