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Company Share Certificate Issuance

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Basic Facts on Company Share Certificate Issuance

A share certificate is a document issued by a company evidencing ownership of company shares as per the details specified in the document. Companies Act 2013 requires the company to issue share certificates post-incorporation of the company.

Face Value Of Share Certificate

Post-incorporation of a company, the Company is required to issue share certificates within a period of two months from the date of incorporation.

In case of allotting additional shares to new or existing shareholders, share certificates must be issued within two months from the date of allotment of shares.

In case of transfer of shares, share certificates must be issued to the Transferee within one month of the date of receipt of the instrument of transfer by the Company.

Details Mentioned In Share Certificate

All share certificates of a company issued in India must have the following information mentioned on the share certificate.

  • The share certificate should be issued in Form SH-1 or any document that resembles Form SH-1.
  • Name of the Company.
  • CIN Number of the Company.
  • Registered Office of the Company.
  • Name of the owners of the shares.
  • Folio number of the member.
  • Number of shares represented by the share certificate.
  • Amount paid on the shares.
  • Distinctive number of shares.
  • Number of share certificate.


Procedure For Issuing Share Certificates

Penalties For Contravention

When any Company fails to comply or breaches the provisions regarding the issue of Share Certificates, then it is subject to penalty. The penalty shall not be less than ₹25,000 but cannot extend a limit up to ₹5,00,000.

Moreover, each defaulting Officer of such a Company will be liable to pay a minimum fine of ₹10,000, extending up to ₹1,00,000.

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