Today I’m going to talk about a share certificate. Here I will cover;
meaning of share certificate
form and contents of share certificate
sample of share certificate
meaning of a share certificate
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.
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 share, 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 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.
Contents share certificate
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 includes
- Name and address of the company
- Incorporation number
- Name of the shareholders
- Number of shares owned and its status (either paid or unpaid)
- Authorization Signature(s)
- Company seal
Share certificate template