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form and contents of share certificate
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Contents
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 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.
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 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
Read more: Shareholders: Meaning, Types, Rights and Everything you need to know
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 authorised by:
Directors ____________________ Secretary ___________________________
__________________________ Date _____________________________
Stock certificate template
STOCK CERTIFICATE
Organized under the laws of the state of [insert name of state where business is incorporated]
[insert name of 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
