Share Certificate Split

Overview

A share certificate split occurs when an existing share certificate is divided into two or more certificates without altering the underlying shareholding. This does not change the number of shares or their nominal value; it only affects how the shares are represented across certificates.

What you'll learn:

• How to split a share certificate in the platform
• When to use share certificate split
• The difference between certificate split and share split
• How the platform handles certificate cancellation and creation

When to Use Share Certificate Split

Use share certificate split when:

• A shareholder requests separate certificates for different portions of their holding (e.g., for transfer or pledge purposes)
• The company needs to reorganize certificate numbering or reflect internal administrative changes
• You need to redeem or repurchase only part of a certificate (split first, then redeem the desired certificate)
• Preparing shares for different transactions that require separate certificates

Share Certificate Split vs. Share Split

These are two different actions:

• Share Certificate Split: Reorganizes documentary evidence of ownership by dividing one certificate into multiple certificates. The shares themselves remain unchanged.
• Share Split: Alters the nominal value and number of shares in issue by subdividing each share into multiple shares.

Performing a Share Certificate Split

Step 1: Navigate to the Share Certificate

1. Go to the company's Capital Structure or Certificates section
2. Open the specific Share Certificate you wish to split

Step 2: Select Split Certificate

1. In the certificate view, click Actions
2. Select Split Certificate

Step 3: Allocate Shares Between New Certificates

Specify how you want to divide the shares:

• Enter the number of shares for each new certificate
• The total must equal the number of shares in the original certificate
• You can create two or more new certificates

Step 4: Review and Confirm

1. Review the allocation of shares across the new certificates
2. Verify that the total shares match the original certificate
3. Confirm the certificate numbers that will be assigned
4. Click Confirm or Split to complete the split

The certificate split has been processed. The old certificate has been cancelled, new certificates have been created, and the register has been updated automatically.

Understanding Share Certificate Split

A share certificate split divides one certificate into multiple certificates without changing the underlying shareholding. This is purely an administrative action that affects how shares are documented.

Key Effects of Share Certificate Split

• Number of Shares Unchanged – The total number of shares held by the shareholder remains the same
• Nominal Value Unchanged – The nominal value per share is not affected
• Share Capital Unchanged – Total share capital remains the same
• Ownership Unchanged – The shareholder's ownership percentage is not affected
• Certificates Reorganized – One certificate is cancelled and replaced with multiple new certificates
• Register Updated – The register of members is automatically updated with the new certificate numbers

What Happens During a Split

1. The original certificate is cancelled
2. New certificates are created with the allocated shares
3. Certificate numbers are assigned automatically
4. The register of members is updated to reflect the new certificate structure
5. Historical records are maintained for audit purposes

Practical Example

What Happens Next

After completing a share certificate split:

• The original certificate is marked as cancelled in the system
• New certificates are created with the allocated shares
• Certificate numbers are assigned automatically
• The register of members is updated to reflect the new certificate structure
• The shareholder's total holding remains unchanged
• Historical records are maintained for audit and compliance purposes

Related Topics

• Redemption of Shares – Learn how to redeem shares (requires splitting certificates for partial redemption)
• Share Repurchase – Learn how to repurchase shares
• Share Split – Learn how to split shares (changes the number of shares, not just certificates)
• Share Certificates – Understand how share certificates work
• Capital Actions Overview – Learn about other capital actions you can perform