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.
