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Share certificate issue

ROC Share Certificate issue

What is the Share certificate issue?

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.

Who has to file the form?

A board meeting is called for deciding about the allotment of shares. The board of directors assigns a committee of directors known as the allotment committee. The allotment committee would then decide about the allotment of shares. Once the allotment committee provides its report with respect to the allotment of shares, the Board then approves such report and then passes the resolution for allotting shares to the respective applicants. Once shares are allotted by the allotment committee, the company secretary sends the letters of allotment to the respective members. The allotment letter refers to a letter that notifies the applicant that the company has allotted a certain number of shares to him. This letter of allotment is considered as the share certificate till the issuance of the final certificate.

When has it to be done?

After the incorporation of the company, the company needs to issue the share certificates within two months from the incorporation date. Where additional shares are allotted to the new or existing shareholders, the share certificates should be issued within two months from the allotment date. In a case related to the share transfers, the share certificates should be issued to transferees within a period of one month of receipt of the instrument of transfer by such Company.

The following details to be provided in a share certificate

Every share certificate issued in India should contain the below mentioned:

  • Name of issuing Company
  • CIN no. (Corporate Identification Number) of such Company
  • Address of the company’s registered office
  • Name of owners of such shares
  • Folio number of member
  • Number of shares which is represented by such share certificate
  • An amount that is paid on such shares
  • Distinct number of the shares