Share certificates must be issued within two months of the transfer or issuance of the shares. Companies generally issue a certificate for all shares acquired, unless the shareholder expressly requests receipt of individual certificates. Occasionally, a shareholder gives a proxy to another person so that they can use their shares to vote on an issue. Company law and the articles of association of a company determine the voting rights of shareholders. A share certificate may be either in registered or bearer form. A registered share certificate is only proof of ownership, while a bearer share certificate, which is unusual today, allows its holder to exercise all the legal rights associated with the share. The Dutch East India Company issued the first share certificate in 1606. It was worth 150 Dutch guilders. (b) Transfer of shares. The transfer of shares in the share capital of the subsidiary holding company shall take place only in its share transfer books. The power of attorney for such an assignment may only be granted by the registered holder or by a legal representative who must duly prove such power of attorney, or by an agent authorized by a power of attorney duly signed and filed with the subsidiary holding company. The transfer will only take place upon presentation of the cancellation of the share certificate. The person in whose name the shares of the share capital appear in the books of the subsidiary holding company shall be regarded by the subsidiary holding company as owner for all purposes.
4. Where a share is retained, the depositary`s register shall constitute prima facie evidence of the beneficial owner`s interest. There are several disadvantages to issuing a share certificate. A share certificate is a written document signed on behalf of a corporation that serves as legal proof of ownership of the specified number of shares. A share certificate is also known as a share certificate. (c) in the case of unlisted companies, duplicates of the share certificates shall be issued within three months and, in the case of listed companies, such documents shall be issued [4] [within forty-five days] from the date of submission of the complete documents to the company. (c) All entries in the register of renewed and duplicate share certificates must be certified by the secretary of the corporation or such other person authorized by the board of directors for the purpose of sealing and signing the share certificate in accordance with the provisions of Rule 5, subsection (3). A damaged, lost or stolen share certificate can be reissued with a replacement certificate for the same number of shares.
In such a case, the shareholder must return the damaged document to the corporation before a replacement document can be issued. At that time, the shareholder may also exercise the right to receive one or more unique certificates. Even without the physical share certificate, you are still the rightful owner of the shares and are entitled to all the rights of a shareholder. Prior to April 2014, the procedure for issuing share certificates was governed by the Companies (Issuance of Share Certificates) Rules 1960. With the entry into force of the Companies (Share Capital and Debentures) Rules, 2014 w.e.f 01 April 2014, the procedure for issuing shares/bonds has been revised. “Any share certificate [issued under the seal of the company, if any][1] issued in the presence of – If your share certificate is lost, accidentally destroyed or stolen, you must immediately contact the transfer agent and request a “stop of transfer”. This prevents the transfer of ownership of the share certificate to another person. Your stockbroker may also be able to help you with this process. You can obtain a new replacement certificate. As a general rule, however, companies first require you to do the following: if a company does not comply with the provisions governing the issuance of share certificates, that company will be punished with a fine of not less than INR 25,000 but could be up to INR 5,000,000, and any defaulter of such a company will be punished with a fine, which would not be less than INR 10 000 but could extend to INR 1 00 000. After all, if a shareholder loses or has stolen their paper certificate, it means a lot of work for the company. In particular, the company must find the old shares, verify ownership, “stop” the paper certificates, and then issue new paper certificates.
Of course, this process also causes headaches for the shareholder. Rule 5. (2) A duplicate of shares may be issued if such a certificate never simply throws away your old share certificates. They may still be worth something. Here are some steps you can take to determine their value:[5][(3) Each certificate must indicate the shares to which it relates and the amount paid into them and must be signed by two directors or by a director and the secretary of the corporation, regardless of where the corporation has appointed a secretary of the corporation. (a) share certificates. Certificates representing shares in the share capital of the subsidiary holding company must be presented in the form determined by the board of directors and approved by the board of directors. Certificates must be signed by the chief executive officer or other officer of the subsidiary holding company authorized by the board of directors, certified by the secretary or an assistant secretary, and sealed with the company`s seal or facsimile.
