Many people make mistakes and it is a very common human trait. For instance, sometimes in a hurry at work or changing residence, we lose share certificates or forget them after placing them.
In this article, we will see what we can do after losing or misplacing our share certificates.
What exactly do you mean by "Share Certificate"?
Companies or financial institutions offer share certificates to individuals to confirm that the individual is a registered proprietor of the company's equity as on the date of publication. It clearly proves your investment in the company's stock and establishes your ownership.
What factors contribute to the loss of your Share certificate?
- In a rush, you place your share certificate and then forget about it. You can sometimes lose it.
- Sometimes we lose sight of the certificate.
- You may also lose it in Transit to the RTA.
What measures should be taken in case where share certificates are misplaced or lost?
- First and foremost, notify the corporation of the lost or missing Share as soon as possible.
- Second, you must write a letter or mail about your missing certificate to the company's address.
- You must submit details regarding the missing or lost share certificate, including the identity, folio number, share certificate number, and address.
What papers are required?
To make an indemnity bond contract, use Non-Judicial stamp paper.
To create an affidavit, get a Non-Judicial stamp paper for Rs.100.
Shareholders must submit an F.I.R. with the police if there share certificate has gone missing or have been misplaced. You must provide the requested facts in the F.I.R.
- Name as it appears on your share certificate
- The share certificate's folio number
- The number of shares that have been issued
- The number on the share certificate.
What procedure do we need to follow to recover the lost share certificate?
These are the steps you need to follow to recover your lost or misplaced share certificate.
Step 1: First and foremost, shareholders must notify the corporation that the share certificate has been lost or misplaced. Such communication must take place in the form of a letter or an email. The Shareholder must supply the firm with information on the missing
- the name on the share certificate,
- share certificate number,
- number of shares,
- folio number, and so on.
Step 2: Following that, you must make a police report regarding misplaced or lost share certificate(s), including the facts such as share certificate no(s), shareholder name, distinctive no(s), and several missing shares. Adequately prepare an Indemnity Bond and an Affidavit on non-judicial stamp paper.
Step 3: The Shareholder must provide to the corporation the following documents: A request letter signed by the Shareholder, an indemnity bond and affidavit, and a certified copy of the F.I.R. filed with the police station for missing share certificate (s).
Step 4: After acceptance of the request letter and other appropriate papers, the Board shall consider whatever procedures are essential to ascertain the validity of the documents and then, upon due confirmation, approve the item by enacting a special resolution.
Step 5: The Board will decide the fees for issuing duplicate share certificates, which will not exceed Rs. 50 per certificate. The firm may also request that shareholders pay the company's out-of-pocket expenses while examining the Shareholder's proof.
Step 6: Following the Shareholder's authorization and receipt of costs, the firm should provide a duplicate share certificate(s) to the Shareholder(s).
Step 7: The share certificate(s) should bear the wording "Duplicate issued rather than share certificate number" on the surface of the certificate. The phrase "Duplicate" must be stamped or written in large letters on the certificate's face.
Step 8: The information on duplicated share certificates issued will be recorded in the Register of Renewal and Duplicate Share Certificates, which is kept in Form No. SH-2.
How can a financial business assist with the Duplicate Share Certificate Issue'?
The duplicate share certificate issuance is a complicated process that requires professional assistance. However, by following a disciplined method, AMA Legal Solutions will assist the shareholders to recoup their money.
Reputable companies, such as ours, will guide you through obtaining a duplicate share certificate. The process includes applying to the corporation, after which its Board of directors will determine whether or not to grant consent.
Following your approval, our firm will review your paperwork and submit to the Corporation. Then, the corporation will issue a duplicate share certificate in 5,6 weeks.
How do we get it right
The Share Certificate serves as proof of the Shareholder's possession of the Shares. Therefore, to minimize financial damage to the Company and Shareholders in the event of a share certificate loss or misplacement, a duplicate share certificate should be issued.
To recover your situation of loss, you must contact a credible professional who can execute the process on your behalf because it is impossible to pass the scrutinizing checks of corporations without aid. In addition, the procedure necessitates knowledge of statutes, laws, and forms accessible exclusively in reputable legal and financial institutions.