This post covers share certificate
Here I will take you through
- what is a share certificate
- form and contents of share certificate
- Why do you need a share certificate?
- How to get a share certificate
- what to do when you lost your share certificate
- Free Share certificate template
- Share certificate template-jpg format
- Share certificate template-pdf format (free download)
- the share certificate format in word
- Stock certificate
- etc,
Let’s get started
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A share certificate refers to the legal document which acts as evidence that a person whose name appears on the certificate owns the stated amount of shares in a specified company.
You may read different definitions of a share certificate from Collins dictionary here
After allotment of shares, a company must issue a shareholder certificate merely as evidence that the person named in the certificate is the owner of a certain amount of shares, and that the shares are paid up to the amount so stated.
On the other hand, a company cannot deny the statements contained in the share certificate when a person is claiming to be a shareholder and is relying on a share certificate to subsist his claim.
The company can only deny it when the certificate is a forgery.
A share certificate is necessary for both company and shareholders because it helps the company to maintain the registry of the company members, also share certificates play a major role when it comes to share transfer or share transmission.
Share certificates is a certificate issued by a company certifying that on the date the certificate is issued a certain person is the registered owner of shares in the company.- Dumisan Pamba
The format of the shareholder certificate is not a matter of the law but practice. Every company has its style but to be valid a shareholder certificate must include
- Name and address of the company
- Incorporation number
- Name of the shareholders
- Number of shares owned and their status (either paid or unpaid)
- Authorization Signature(s)
- Company seal
Read more: Shareholders: Meaning, Types, Rights and Everything you need to know
There are several ways through which you can get your physical share certificate;
- Ask your broker to obtain it on your behalf
- Contact the company directly
- Order the certificate through a transfer agent
Ask Your Broker
You can get in touch with your broker and ask him to get the certificate on your behalf.
This is the simplest method because all you need to do is ask your broker to get the certificate on your behalf.
You can hire him to obtain it on your behalf for a little cost, regardless of the sort of brokerage firm you are using, such as an online or full-service brokerage firm.
You should consult with your broker before submitting your request to find out how long it might take and how much it will cost.
Contact the company directly
If you purchase shares from a certain company, you can get in touch with them and request that it mail you a physical share certificate.
Visit the Secretary of State’s website in the state where the company is located if you are unable to locate the company’s contact details.
Order the certificate through a transfer agent
A lot of companies issuing shares utilize a transfer agent who handles the company’s stocks. You can find the transfer agent’s name by looking at the company’s annual report.
In order to find the report, you can visit the SEC website and search the company’s website to find all of the applicable filings, including the annual report.
In the event that your share certificate is stolen, accidentally destroyed, or lost, the first thing you should do is to transfer Agent quickly and ask them to “stop the transfer.”
This stops the stock certificate’s ownership from being transferred to another individual. You might be able to get assistance with this process from your stockbroker.
The good news is that you are still the legitimate owner of the stock and are entitled to exercise all of your shareholder rights even if you lack a physical share certificate.
I think it is always a good idea to process the new physical certificate from your company.
Companies will initially require you to take the following actions to Make a statement of facts surrounding the loss in an affidavit.
After that, you will have to purchase an indemnity bond to protect the company against the chance that the lost certificate may be presented at a later date.
Then request a new certificate before an innocent purchaser requires it.
Company Name: [INSERT NAME]
Company Number: [INSERT NUMBER]
SHARE CERTIFICATE
| Certificate No | Class | No of Shares | ||
| [INSERT NUMBER] | [INSERT CLASS, I.E. ‘ORDINARY’] | [INSERT NUMBER] |
This is to certify that
[INSERT FULL NAME OF SHAREHOLDER]
of
[INSERT POSTAL AND PHYSICAL ADDRESS]
is the registered holder of [INSERT NUMBER AND CLASS] shares of $/ZAR[INSERT NOMINAL VALUE OF SHARES] each in the above-named company subject to the memorandum and articles of association of the company
This certificate was authorized by:
Directors ____________________ Secretary ___________________________
__________________________ Date _____________________________
The following is share certificate format in word
Stock certificate template
STOCK CERTIFICATE
Organized under the laws of the state of [insert name of the state where business is incorporated]
[insert name of the corporation here]
This Certifies that [insert owner’s name here] is the holder of [Insert # of shares owned] Shares of the [insert total # of shares issued] shares of the total stock issued by the above-named corporation.
This evidences [insert percentage of shares issued that you own here]% of the total shares of stock issued by the corporation.
In Witness Whereof, the said Corporation has caused this Certificate to be signed by the duly authorized officer this [insert date] day of [insert month] A.D. [insert year].
[Signature of an authorized officer of the Corporation]
Stock certificate template-jpg
