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PROCEDURE FOR ISSUING SHARE CERTIFICATE?



Meaning: -After allotment company does not issue share certificate immediately. Till then letter of allotment is considered as share certificate. However, the company has to issue the certificate within 3 months of the date of allotment.

Following is the procedure for issuing of share certificate:

1.       Printing of share certificates: - Once the shares are allotted and the letter to that effect are dispatched. The secretary makes necessary arrangements to print the certificates. The share certificate form is prescribed in the Articles of Association.

2.       Entering the Details: -The details of allotment and other necessary details are entered on the share certificate.


3.       Board Meeting: -After the preparation of share certificates, Board Meeting is convened. A resolution is passed in the Board meeting giving the authority to at least two directors and secretary to sign and put the common seal of the company on the certificate.

4.       Intimation to members: - The secretary sends the letter of intimation to members stating that the certificates are ready and they will be delivered in exchange of allotment letters.

5.       Dispatch of Share Certificate: -The share certificates are dispatched by registered Post or the shareholders can collect them personally from the registered office of the company.


Ø  Issue of Duplicate Share Certificate: -If the original share certificate is lost or misplaced the shareholder may request the company to issue duplicate share certificate. The secretary after scrutinizing the application issues the certificate by following the procedure given in the Articles of Association of the company

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