Definition: - Section 84 of the companies Act defines share certificate as ‘A certificate, under the common seal of the company, specifying only the shares held by any member, shall be a prima facie evidence of the title of the member of such shares’.
Contents of Share Certificate
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a. Name and Address of the registered office of the company.
b. Name(s) of the Shareholder(s).
c. Serial number of share certificate.
d. Number of Share(s) held.
e. Number and class of shares. (i.e. whether Preference or equity shares)
f. Nominal value and amount paid on each share.
g. Distinctive Number(s) of shares.
h. Date of issue of Certificate.
i. Signature of two directors and one authorized signatory.
j. Seal of the company against the affixed revenue stamp.
k. The face value of the shares.
l. Whether the face value is fully paid or partly paid.
The share certificate is required for the transfer and transmission shares. It is a registered document and not a bearer document. It can be transferred only by following a certain transfer procedure.
