A Share Certificate is a document, in writing, that states the name of the shareholder, number of shares, certificate number, folio number, distinctive numbers of the shares and paid up amount per share. The shareholder named in the certificate is the legal owner of the number of shares described therein.
Conditions for issue
Issue of a share certificate is subject to fulfillment of two conditions:
- A resolution authorizing issue should be passed by the Board of Directors;
- Letter of Allotment should be surrendered. In case of bonus shares, the Letter of Acceptance is mandatory.
Time for issue
At the time of incorporation and at the time of allotment, the certificates should be issued within a period of not more than 2 months from the date of incorporation / allotment. A period of 1 month is permitted for issue of certificates in case of transfer or transmission of shares
Dematerialised Shares
Share Certificates need not be issued when the shares are held in dematerialized form. Upon allotment of the shares, the particulars of the shares issued will be advised by the issuing company to the depository. The owner is the person whose name appears in the record of the depository.
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- What are Bonus Shares?
- Accounting Value of The Stock
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- Demat Shares Shares in Electronic Form
I never knew I had to wait one month before getting my share certificate - this makes me feel a lot less nervous. It’s great to know that I don’t always have to wait for share certificates to be issued for dematerialised shares. My name will just appear in the depository… which leads me to ask, where can I access the depository? Is this information issued by the company in which I hold my shares?