Today I'm going to talk about share certificate. Here I will cover;
  • meaning of share certificate
  • form and contents of share certificate
  • sample of share certificate
  • etc,

    meaning of a share certificate

    A share certificate refers to the legal document which acts as evidence that a person whose name appears on the certificate owns the stated amount of shares in a specified company.  

    After allotment of shares, a company must issue a shareholder certificate merely as evidence that the person named in the certificate is the owner of a certain amount of share, and that the shares are paid up to the amount so stated.

    On the other hand, a company cannot deny the statements contained in the share certificate when a person is claiming to be a shareholder and is relying on a share certificate to subsist his claim. 

    The company can only deny when the certificate is a forgery.

    A share certificate is necessary for both company and shareholders because it helps the company to maintain the registry of the company members, also share certificates play a major role when it comes to share transfer or share transmission.  

    Form and contents of valid shareholder certificate

    The format of the shareholder certificate is not a matter of the law but practice. Every company has its style but to be valid a shareholder certificate must includes

    1. Name and address of the company
    2. Incorporation number
    3. Name of the shareholders
    4. Number of shares owned and it's status (either paid or unpaid)
    5. Authorization Signature(s)
    6. Company seal

    Share certificate template

    The following is the template of the share certificate. 

    Shareholder Certificate Template

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