A share certificate is a document that serves as proof of ownership of shares in a company. The certificate includes information such as the name of the shareholder, the number of shares held, and the class of shares.
According to the Companies Act 2013, it is mandatory for a company to issue a share certificate to its shareholders after its incorporation. The procedure for issuing a share certificate and the regulations related to it are discussed in this article.
Sr. No. | Scenario | Timeline to issue share certificate |
1 | In case of subscribers to memorandum | Within 2 months from the date of incorporation |
2. | In case of allotment of shares | Within 2 months from the date of allotment |
3 | In case of transfer or transmission of securities | Within 1 month from the date of receipt of the instrument of transfer or intimation of transmission by the company |
4 | In case of issue of duplicate share certificates | Within 3 months from the date of submission of complete documents by the shareholder to the company. |
The mandatory requirements for the issuance of share certificates typically include:
1. The name of the shareholder
2. The number of shares owned
3. The company's name and stock symbol
4. The date of issuance
5. The signature of authorized company representatives
One Person Companies, the share certificate only needs to be signed by a single director and the company secretary or someone else who has been authorized by the board for this purpose.
