Duplicate Share Certificate: What They Are, How To Deal With Them, and Why It's Important!

 It's a common practice at many companies to create duplicate share certificates. This practice can be very helpful in case there is a need to sell shares. This blog will outline what a duplicate share certificate is and why these should be issued. It will also outline how these certificates should be issued and issued correctly.

What they are:

As an entrepreneur, you'll eventually need to work with investors at some point in your business's lifespan.  When it comes time to do so, make sure their interests are protected by issuing them with the appropriate legal documentation, like share certificates (also known as stock certificates or shareholdings). This document has historical value and serves as proof of ownership for your company's shares.

A shareholder can demonstrate financial responsibility to lenders, investors, and potential partners by providing legally sanctioned documentation of their stake in the business. Shareholders who themselves or whose certificates are lost or misplaced can request Duplicate Share Certificates, which are made available at designated branches across India.

Share certificates can be costly, and it's a good idea for any shareholder to keep their certificates safe.

Let’s see the procedure to issue a duplicate share if you missed it!

Shareholders responsibility:

Do you have a lot going on in business, and you tend to overlook things? Don't worry, it happens to the best of us sometimes. That's why we encourage you to inform the company asap.

#1 When you lose your Share Certificate, do not be disheartened. Let the Share Registry know so that they can create a new one for you.

#2 A common method of communication these days is a physical letter sent through the postal service to the address of the company, but nowadays, people often choose to reach out via email.

#3 If your share certificate has been lost or misplaced, then you will need the following details before an identical one can be issued to you. Name, address, folio number, and share certificate number.

The actions taken by the company:

#1 Upon losing any Share Certificates, the company should freeze all shares of transfers for at least 30 days to prevent fraud.

#2 Once a corporation has been registered, the corporation should do everything it can to help its shareholders understand the process of issuing share certificates.

In order to issue a duplicate share certificate, the following documents are required:

First, take out an indemnity bond agreement on non-judicial stamp paper. Next, make an affidavit, which will be prepared on a non-judicial stamp paper of Rs.100. Filing an FIR with details in the police station about the lost share certificate is necessary after complying with this step in order to allow for legal action to take place later on in the process when all other documentation has been completed.

The details required are as follows: The name on the share certificate, folio number on the share certificate, share certificate number, and a distinctive number of shares are all needed before proceeding through each subsequent step that follows afterward. Publishing an advertisement in a newspaper about the fact that a company's share certificate has gone missing is also required so that if someone has come into possession of it, they can return it immediately.

Shared Certificates are a great way to allow you to have more control over your financials. This is especially important if you have multiple companies that you are working with, or if you have one large company that is split up into multiple departments. Working with shared certificates will allow you to take care of the financial aspects of the company, and not have to worry about making mistakes or not having the right information. We hope that you’ve enjoyed the post and that it helped you learn more about shared certificates and how they can be useful to you and your business! If you have any questions or concerns, we would be happy to answer them for you! Please feel free to contact us anytime at XXXXXXXXXXXXXXXXXXXXXX. Thank you for reading, and we look forward to working with you in the future!