A physical share certificate allocated by a Corporation represents the certificate holder's commitment to the Company's capital. As a consequence, a Physical share certificate is a sort of property that may be acquired.
These physical share certificates, however, are commonly lost, forgotten, or pulled out. In this instance, the shareholder must ask the firm to replace the original share certificates with duplicates or renew old share certificates.
What is a share certificate?
Under Section 46(1) of the Companies Act of 2013, a Share Certificate is among the certificates supplied by the business ("the Act"). A share certificate is a document that states the number of shares held by an individual and is issued under the Company's seal or certified by two directors or a board and the Business Secretary, if the Company has chosen a Company Secretary.It is self-evidently proof of the person's right to make such a claim.
What is the definition of a duplicate share certificate?
A provincial company issued a duplicate share certificate on behalf of the original share certificate. This scenario might arise from a missing certificate or from it being ripped out.
What is the situation in which shareholders can file for the petition?
Shareholders petition for duplicate or renewed shares in various situations, including share certificates belonging to an elderly family member, missing a long time ago, or family uninformed of the reality.
What is the procedure to get a duplicate share certificate? Follow these steps to get a duplicate share recovery if the original is lost or misplaced:
- The applicant needs a duplicate share certificate for the transmission process.
- In the event that share certificates are stolen, the shareholder applies for a duplicate share certificate.
- Suppose any old share certificate is torn or mutilated. In the event of a share split or consolidation, for example.
- In all such circumstances, the Company must use extreme caution to avoid fraud in issuing duplicate shares.
Phase 1: Notify the firm immediately about the lost or destroyed share certificates.
First, if you discover that your Share certificate has been misplaced, you must prepare your paperwork, which is listed below. You must also notify the firm of your loss.
The shareholder should provide information about the missing share certificate, such as :
- name on the share certificate,
- share certificate number,
- number of shares,
- folio number, etc., to the firm.
Such information must be in the form of a paper or email. If the share certificate is damaged or lost, the investor must contact the corporation promptly.
Phase 2:Secondly, action is taken by the Company or registrar (RTA) :
When a corporation receives information regarding the loss of share certificates, folio numbers, or other details, it places a 1-month hold typically on any transfer to avoid fraud or unlawful transfer. After confirming the investor's identification, the corporation will deliver the method for issuing duplicate share certificates, which includes the format of an affidavit, surety, and indemnification agreement.
Phase 3: Finally, you must acquire and submit all of the following documents to recover your lost physical share certificate:
Compile these papers first, such as:
- Compile an affidavit and indemnification bond agreement on Rs. 100 and Rs. 300 stamp paper, as specified by the company/RTA.
- Submit an FIR with the police using the following data about the missing certificate: Folio number, business name, share certificate number, unique number, and so forth. Publication of a broad notice in the official gazette is required.
Phase 4: Fourth, you must proceed with the verification procedure:
The firm has taken this move. After the papers are submitted, the company/RTA will review and validate the request. Following the completion of the verification. The request to issue a duplicate share certificate was then approved. Following approval, the company/RTA will receive a duplicate certificate in 4-6 weeks. "DUPLICATE" is written in prominent, readable characters.
Phase 5: Have your duplicate share certificate authorised by the registered office:
You must double-check all of the facts after receiving your duplicate share certificate. The information of the duplicate share certificate issued must be recorded in Form No. SH-2's Register of Renewed and Duplicate Share Certificate.
We all know that Share Certificates are critical papers in every aspect. If you want to recoup from your financial loss, you must do a few simple steps. First, you must keep the documents safe. Second, suppose you misplaced a lost physical share certificate. In that case, you must act immediately and call an expert who can assist you in producing duplicate share certificate processes since the process of issuing a Share Certificate is extensive and time-consuming.
If you urgently seek help to solve the issue of duplicate share certificates, then contact us or comment below to get an instant response.