Essential Tips on Duplicate Share Certificates:

Posted by Infiny Solution on November 17th, 2021

Businesses need to issue duplicate share certificates at some point or another. It is a legal requirement and is usually requested by investors as well as by business owners. Unfortunately, this is not as simple as it appears. There are some essential tips that you must adhere to ensure that you do it right. This blog will detail these tips and the process on the guidelines for issue of duplicate share certificates.

In the context of a company, a share certificate is a document certifying ownership of a certain number of voting shares in the company. The issuance of share certificate should be registered in the name of the owner. A duplicate share certificate refers to a replacement for an original share certificate. In the event that the original share certificate is lost, destroyed or defaced, as long as a member can provide proof as such, they will be issued a duplicate share certificate by the company they\'re a member of. A duplicate share certificate should be registered in the name of the original holder of the share certificate.

Shareholder responsibility :
In case of a lost share certificate, the shareholder must inform the company immediately. The shareholder should communicate with the company in time by either sending a letter or an e-mail. The shareholder must provide details about the missing share certificate such as, name on it, share certificate number, number of shares and folio number to the company.

When experiencing the unfortunate circumstance in which you have lost share certificates, the best course of action is when the company who issued, gets all the necessary information from you so that they can freeze any pending transactions. Once this measure has been put into effect, hopefully the process for reconstructing a duplicate share certificate can begin in an efficient manner so that you are able to regain ownership over your stocks.

A certificate shall be issued under the signature of a duly authorized representative of the company. If a company has a seal, it could be affixed to this document.

A duplicate share certificate can not be issued without authorization by the board. The first step would be to submit a request for a duplicate share certificate to the directors of your company. The directors will discuss your request and must eventually pass a resolution authorizing the issuance of a duplicate share certificate should they choose to do so. This should happen, as long as they have met all the stated requirements as laid out in law. This resolution will be communicated from the Board to their secretary, or any other person that has been given authority by them, who will then issue the desired certificate.

We hope you found this blog post useful around duplicate share certificates. We asked our team to share their tips on ensuring duplicate share certificates are issued. We know that this is an important topic for businesses, so we would love to hear your thoughts on this. Please leave a comment below with your thoughts!