What do shareholders lose after misplacing share certificates? It ensures a nightmare of the chances available about the lost documents. It leads to the financial loss of the shares in the certificate. Here you will learn the steps to issue a duplicate share certificate after losing it to avoid financial breakdown.
The shareholders inform the company after misplacing the certificates for duplicate shares. The folio number of the share certificates contains details about the shareholders concerning their intimation. The details are in the company’s information center concerning the loss of share certificate.
Shareholders need information about their certificate details to fill in the duplicate certificates. It ensures the bond, indemnity, and complaints about the loss. It prevents fraud and transfer of shares to third parties. Read about the process of issuing duplicate share certificates and the documents required.
What are the steps to follow for misplacing share certificates?
The shareholders and the company follow all the steps to issue share certificates with misplacing ones. Follow all the steps given below to recover the lost certificate having all information-
Shareholders immediately call the company and tell them about the misplacing case of the certificates. This communication leads to disclosing information about the shareholders to file FIR with the police. The information stays with the company mail to put the same data in new certificates.
What are the documents for issuing duplicate certificates?
- Bond agreement for the stamp papers by the companies
- Affidavit stamp paper for juridical papers from the executive public and notary magistrate
- FIR documents for the lost certificates with information
- Name and address of the shareholder
- The certificate number
- Folio number
- Number of available shares
- Advertisement proof about the misplaced certificates
- Identity proof of the shareholders
The issuing process of duplicate certificates
How can you issue duplicate certificates in the company?
The shareholders apply for issuing certificates for their members. It requires the documents to fill in the information and the shareholder’s signature to bring the lost pieces. Shareholders send the documents to the company to issue duplicate certificates.
The company receives the information and application to start the issue process for getting duplicate certificates. The company issues the certificates after taking consent from the board of members and directors for loss of share certificate. It issues all the certificates to the members to provide information about their shares.
The board looks into the below matters while giving consent for the duplicate share certificates-
- The board charges fees to issue the duplicate certificates and does not cross the limit of Rs 50 per share certificate.
- Renewing or issuing duplicate share certificates requires expenses to show the evidence and information. Shareholders consider the board for the certificate and production in their best interest.
- The duplicate share certificates contain all the original information with certificate numbers and stamp papers. It is in printing form to carry all the block letters and issue the share certificate.
- The register renews and duplicates the share certificates to keep the voting power in the company. It is there in the registered office by the company members to preserve the voting power. The board of members in the company has voting rights with the company secretary.
The shareholder’s issues share certificates to have voting powers in the company. Shareholders always complain to the police about losing their shares. It allows the shareholders to vote for positions on the company’s issues. It applies rights to the articles of incorporation to assign voting rights according to the companies act. It carries all the essential information to issue duplicate share certificates and offers advantages.