Share Certificate

Overview

A share certificate certifies that you or another party is a member of a company and holds shares. All companies are required by law to provide certificates to all of their members.

What is a share certificate?

A share certificate (or stock certificate) certifies that you or another party is a member of a company and holds shares. All companies are required by law to provide certificates to all of their members.

What does a share certificate cover?

A share certificate covers the name and address of the shareholder, the number of shares held by the shareholder, the type of shares (ordinary), the share price, the date of issue, a unique share certificate number, and details of the company issuing the shares.

When should I use a share certificate?

You should use a share certificate when there are new individual shareholders in a recently formed company or in an exisiting company issuing more shares, or for existing individual shareholders who are receiving transferred shares or that have lost their certificates.

Do I need a share certificate?

A company must issue share certificates for its shareholders within two month of its formation or the date of new shares issued or transfered. When new shares are issues, they will only become binding when the company notifies the new shareholder with a share certificate.

Further information

A share certificate can often be required as proof of share ownership.

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