TheTaxHeaven Dictionary - Know the meaning of tax

Share Certificate

What exactly is a share certificate?
A share certificate is a written, signed document that certifies the holder's ownership of a specific number of shares in the company. After being incorporated in accordance with the Indian Companies Act, the company issues share certificates. The share certificate includes information about the shares that person owns as well as the date of issuance.

Explained Share Certificate
Holders of stock certificates are permitted to assign their voting rights to another party. Similar to this, stockholders without certificates can appoint proxies to give them the power to cast their votes. The company's charter and corporate laws apply to the voting rights.

When an investor's original share certificate is misplaced, destroyed, or stolen, a replacement is provided. The number of shares listed on the replacement share certificate will match that on the original. Before issuing replacement certificates, the company will collect the damaged ones. If they choose, shareholders can ask for different certificates. If not, they will only get one certificate.

In the past, dividend rights could only be claimed by presenting share certificates. Companies stamped the back of the share certificate with a payment receipt when they paid dividends to shareholders.

Information mentioned on share certificates :-

1 Name of the company

2 Company Corporate Identification Number ( CIN )number

3 Owners' names of the shares 

4 The company's registered office address

5 Folio number for Member 

6 The amount paid for the stock

7 Total shares that the company has issued

8 The share certificate's number