Procedure for Issue Share Certificates in Mumbai

Views:
 
     
 

Presentation Description

A shareholder may be loosing certain rights due to loss/misplaced/stolen/damaged share certificates. Not only this, the shareholder may not be able to sell the same in case of any need since he doesn't have the shares with him. For more information about work incentives, visit our website at : http://www.letsdemat.com/.

Comments

Presentation Transcript

PROCEDURE OF ISSUING SHARE CERTIFICATES:

PROCEDURE OF ISSUING SHARE CERTIFICATES

STEPS FOR ISSUE SHARE CERTIFICATES:

STEPS FOR ISSUE SHARE CERTIFICATES A meeting of Board of Directors is conducted to form a small committee of Directors to decide the allotment of shares and the committee so formed is referred to Allotment Committee. The committee decides about allotment of shares and submits a report to the Board. The Board, if approves the report, will pass a resolution to allot the shares to concerned applicants.

DELIVERY OF ALLOTMENT LETTERS:

DELIVERY OF ALLOTMENT LETTERS Once the Board resolution is passed to approve the allotment of shares, the allotment letters are dispatched to the concerned members. The allotment letter contains information as to a number of shares allotted to an individual.

SURRENDER OF LETTERS OF ALLOTMENT:

SURRENDER OF LETTERS OF ALLOTMENT Rule 5 of the rules, stipulates surrender of letters of allotment or fractional coupon of requisite value as a condition precedent to issuance of share certificate. Thus as per Rule 5, no share certificate can be issued except (1) in pursuance of a Board resolution and (2) on surrender to the company of the letter of allotment or fractional coupons of requisite value.

PREPARATION OF REGISTER OF MEMBERS:

PREPARATION OF REGISTER OF MEMBERS A list of applicants and allotment sheets forms basis of preparation of Register of Members and the register contains information about the shareholders and the details of shares allotted to them.

FORMAT OF SHARE CERTIFICATES:

FORMAT OF SHARE CERTIFICATES Prior to coming into force of present rules, there was no format prescribed for share certificates. The Rule 5 of the rules has given flexibility to the management to issue a share certificate in a format as near as possible to Form No. SH.1 prescribed by the rules. The form SH.1 contained the name and registered address of the company, details of shares allotted, machine printed certificate number, the name of the holder(s), the number of shares held the date of issue and duly certified by two Directors and one Secretary/any other authorized person of the company.

SIGNATORIES TO THE SHARE CERTIFICATES:

SIGNATORIES TO THE SHARE CERTIFICATES Thus below mentioned signatories are required to put their signatures on a share certificate: Two Directors specifically authorized by the Board of Directors of the company for the purpose or the Committee of the Board if so authorized by the Board. The Secretary or any other person authorized by the Board.

INTIMATION TO MEMBERS:

INTIMATION TO MEMBERS After the share certificates are ready, the Company Secretary shall inform all the shareholders in this regard and that the certificates shall be delivered in exchange for the letter of allotment and bankers receipt for payment of allotment money. The Company also issues a public notice for general information of members.

DELIVERY OF SHARE CERTIFICATES:

DELIVERY OF SHARE CERTIFICATES As per provisions, the share certificate once issued shall be delivered within a period of two months from the date of allotment, in the case of allotment of shares. The members who had surrendered allotment letters, share certificates are sent to them by Registered Post. The Company may also arrange to deliver share certificate to local shareholders, where the registered office of the Company is situated, by way of setting up a collection center in their office or from the office of the agency appointed for the dispatch of certificates.

Know more about Issue Share Certificates Services through professionals at LetsDemat:

Reference : http://www.ipleaders.in Know more about Issue Share Certificates Services through professionals at LetsDemat

authorStream Live Help