A share certificate should be signed by two company directors or one director and the company secretary. For companies with a single director and no company secretary, the company director should sign in the presence of a witness who attests to his or her signature.
The two directors or their attorneys and the secretary or other person shall sign the share certificate. Provided that, if the composition of the Board permits of it, at least one of the aforesaid two directors shall be a person other than a managing or whole-time director.
A share certificate needs to be signed by:
Two company’s directors; or. A director and the company’s secretary; or. In the event that the company has no company’s secretary but single director then, the company director in the presence of an eyewitness who confirms to their signature.
A share certificate refers to a document which is issued by a company evidencing that a person named in such certificate is the owner of the shares of the Company as stated in the share certificate. The Indian Companies Act mandates companies for issuing share certificates post their incorporation.
These rules provide that: (i) A share certificate can be issued only under the authority of a resolution of the Board of Directors. (ii) Every certificate shall specify the name(s) of person(s) in whose favour the certificate is issued, the shares to which it relates and the amount paid up thereon.
Directors can decide to issue shares by majority vote. … Once a share has been issued, the shareholder is entitled to a share certificate. This certificate must state: the corporation’s name, as set out in the articles of incorporation.
It is possible for a share certificate to be validly executed under hand using an electronic signature. A document is generally understood to have been executed under hand if it has been signed by, or on behalf of, the parties to it (rather than executed as a deed).
A share certificate should be signed by: Two company directors; or. One director and the company secretary; or. For companies with a single director and no company secretary, the company director in the presence of a witness who attests to his or her signature.
It is common practice to issue share certificates to the subscribers (original shareholders) who set up the business and become members during the company formation process; however, there is no legal requirement to do so.
Company share certificates must be issued by the company to the shareholders within 2 months after the initial company registration as decided in the first board meeting. It is a duty of the company to issue share certificates within 2 months of allotment of shares to the shareholders.
Such Blank Share Certificates shall be kept in the custody of the Secretary or such other person as the Board may authorize for the purpose. D. Time period for preservance of book relating to share certificate. All books relating to share certificates shall be preserved in good order not less than thirty years.
Procedure for Issuing Share Certificates
If a shareholder requests more than one certificate, then the company can issue additional shares for payment of Rs. 20 per each share certificate. Must issue share certificate at allotment or subscription or at the time of Incorporation.
Estoppel as to the title to the shares: A share certificate is a prime face evidence of title, i.e., on the issue of a share certificate, the company is estopped (i.e., prevented) from denying the title of the person to the shares whose name is mentioned in the certificate.
The Board of Directors have the power to allot shares.
No new share certificates for listed companies will be issued from January 2023. … As a result of CREST, both electronic (“uncertificated”) and paper shares exist for listed UK companies. The existence of two types of shares can cause confusion and inefficiency, hence the desire to move to one type of share.
As per Section 3 of Indian Stamps Act 1899, Every Share Certificate must bear the necessary stamp duty as per the Stamp Act of the respective State/ Union Territory from which Certificate is issued. … In such cases, putting adhesive stamp on each share certificate is not necessary.