What is Company Share Certificate?

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By Hiral Vakil on March 11, 2019

A Share Certificate is a document issued by a company evidencing that the person named in the certificate is the owner of the number shares of that Company as specified in the Certificate. Companies Act requires the company to issue share certificates post-incorporation of the company.

Face Value of Share Certificate:

The face value or nominal value of shares mentioned on the share certificate must be as per the Memorandum of Association and Articles of Association of the Company. Shares of a company not listed on any stock exchange can have a nominal value of Rs.1, or Rs.10, or Rs.100 or Rs.1000 as per the requirements of the promoters. Shares listed on any stock exchange but not in DEMAT form should have a face value of Rs.10.

Kinds of Share Capital:

  • Equity Share Capital
  • Preference Share Capital

Time Period for Issue of Share Certificates:

  • In case of Incorporation: Within a period of 2 (Two) Month from the date of Incorporation to the subscriber of Memorandum.
  • In case of Allotment: Within a period of 2 (Two) Month from the date of allotment of shares.
  • In case of Transfer: With in a period of 1 (One) Month from the date of receipt of instrument of Transfer by the Company

Share Certificate shall specify following Matters:

  • Name of Company, CIN of Company and Registered Office Address of the Company
  • Name of Member
  • Every Certificate shall be under the Common Seal of the Company
  • Number of Shares it relates
  • Amount paid on those Shares
  • Distinctive Number of Shares
  • Number of Share Certificates
  • Folio Number of Member