Every company that issues capital has to give a share certificate to show the owners of the shares. It is duly stamped and signed by the director or by the authorized person under the common seal of the company. The number of shares purchased, the certificate number, the shareholder’s name, and address, the company’s name, and address, and many other details are listed on the share certificate.
You should keep your share certificate safe because it serves as the initial proof that you are the owner of the company share. The misplacement or loss of the share certificate will affect you financially, as you will not have any proof of the ownership of the shares. If you have also misplaced or lost your share certificate, there is no need to worry because the company issues a duplicate certificate. The company can issue duplicate share certificates only when:
The original document should be proven lost.
The original certificate that got damaged or torn, should be handed over to the company.
Steps that should be taken when the share certificate is lost or misplaced
Steps to be taken by a shareholder
The following actions should be taken right away by a shareholder if the share certificate gets lost or misplaced.
You need to notify the company right once if your share certificate is missing or lost.
You can either write the corporation an email or send them a letter at their address to let them know about this.
You must share the details of the lost share certificate like name, address, share certificate number, and folio number with the company.
Steps to be taken by the company
The following actions should be taken by the corporation when any shareholder informs them that they have lost or misplaced their share certificate.
To stop any fraudulent transfers, the corporation shall suspend share transfers for 30 days after receiving the complaint.
The corporation is required to inform the shareholder of the next steps in the process of issuing a duplicate share certificate after the shareholder’s identity has been verified.
Documents needed to issue a duplicate share certificate
For issuing the duplicate share capital, you need the following documents.
Create a bond agreement for indemnification on non-judicial stamp paper.
Purchase an Rs. 100 non-judicial stamp paper in order to create an affidavit.
Report the loss of the share certificate by filing an F.I.R. at the police station with the following details:
The share certificate includes the name.
Your Share Certificate Number.
The number of shares that you have purchased.
Your share certificate lists your Folio number.
Your proof of identity and residence.
Advertisement published in a newspaper on the lost share certificate.
Procedure to Issue Duplicate Share Certificate
You must follow the following steps in order to issue the duplicate share certificate.
The first step that the shareholder has to do is to make an application to issue the duplicate share certificate. With that also attach the documents required with the shareholder’s signature and send them to the company.
As the company will receive the shareholder’s application, they will start the process for the issue of the duplicate share certificate.
The company will decide in its board meeting about the issue of the duplicate share certificate. While making the decision, the Board has to look into the following matters:
For the issue of duplicate share certificates, the Board will take the fees but it should not exceed Rs. 50 per share certificate.
When issuing the share certificate, the Board should take the expenses into consideration if they are greater than what is necessary to investigate the shareholder’s evidence.
After the board decides to issue the duplicate share certificate, the company inspects all the documents provided by the shareholder. And then issues the duplicate share certificate to the shareholder.
Within 45 days of receiving the paperwork, the listed company must issue a duplicate share certificate.
The unlisted firm must issue the duplicate share certificate within three months of receipt of the supporting papers.
As soon as the duplicate share certificate is issued to the shareholder, it should be recorded in Form SH-2’s “Register of Renewed and Duplicate Share Certificate”.
The issued duplicate share certificate should contain the line “Duplicate issued in lieu of Share Certificate No….” In this sentence, the word “duplicate” should be stamped or printed in bold block letters on the share certificate.
The Register of Renewed and Duplicate Share Certificates should be kept by the company at their registered office; it can also be kept by anybody with board member approval, such as the company secretary.
Conclusion
If you have lost your share certificate, then immediately take action against it and get a duplicate share certificate issued from the company. There are many reliable firms, with the help of which you can pass the inspections of companies. The process of getting a duplicate share certificate requires knowledge of various acts, forms, rules, and regulations, which you will get from good legal and financial firms. For more such pieces of information, visit our website- Infiny Solutions.
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