Procedures Regarding Issue of Share Certificate
Posted Date: 22-Mar-2010
Mohammed Julfekar Haider
Share Certificate; Steps regarding issue of share certificate
The procedures regarding issue of share certificate are explain in brief as follows:-
(1) Board Meeting for allotment:
A meeting of the Board of Directors is called to decide about the allotment of shares. The Board appoints a small committee of directors called the allotment committee. This committee will decide about the allotment of shares. Once the allotment committee submits their report regarding the allotment of shares, the Board approves the report and passes a resolution to allot the shares to the concerned applicants.
(2) Dispatch of allotment letters:
Once the shares are allotted, the secretary sends allotment letters to the concerned members. An allotment letter is a letter which informs an applicant that he has been allotted a certain number of shares by the company. This allotment letter is treated as a share certificate till the issue of final certificate.
(3) Preparation of Register of members:
The secretary prepares the Register of members from the application lists and the allotment sheets. The Register of member gives information about the share holders and the details of shares allotted to them.
(4) Printing of Share Certificates:
The secretary should prepare the form of share certificate as per the form prescribed by the Articles. He should get this form printed with all necessary details as required under the Indians Companies Act, 1956.
(5) Preparation of Share Certificates:
After printing the share certificate, the secretary has to get the necessary details printed on the share certificate. He has also to see that the share certificates are signed by two directors. He has also to put his signature on the share certificate. He has also to see that the seal of the company is affixed on the share certificate or not. The secretary has to fill in the details in the certificate with the help of application and allotment sheets.
(6) Board meeting for sealing and signing share certificate:
A meeting of the Board Director is called. In this meeting two directors and a company secretary will sign the share certificates. The seal of the company and a revenue stamp need to be affixed on each share certificate. In this meeting a resolution is passed to issue the share certificates. As issue of share certificate needs prior sanction of the Board.
(7) Intimation to the members:
The secretary has to inform the share holders that the share certificate are ready and that they will be delivered in exchange for the letter of allotment and bankers receipt for payment of allotment money. A public notice is also issued for general information of members.
(8) Dispatch of share certificate:
To members who surrender the letter of allotment, the share certificate are sent to them by registered post. The local share holders may collect their certificates personally from the registered office of the company or from the office of the agency appointed (Registrar) for the dispatch of share certificates.
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