Share Certificate

Understanding Share Certificates

A share certificate is an official document issued by a company to its shareholders, serving as evidence of ownership of a specific number and class of shares. It represents the shareholder's title to the shares and includes key details such as the shareholder's name, the number of shares held, the class of shares, the nominal value, and any distinguishing numbers assigned to those shares.

Key Features of a Share Certificate

• Identification of the Company – Name and registration number of the company
• Holder's Details – Name and address of the shareholder
• Share Information – Class of shares, number of shares, nominal value, and share numbers (if applicable)
• Date of Issue – The date the certificate is formally executed and issued
• Signatures/Seal – Company signatures or seal as required by the articles

Practical Use

• Required for transferring shares—the certificate must be delivered to the company when registering a transfer
• Used as proof of ownership in dealings with banks, courts, or other institutions
• Must be updated following any allotment, transfer, redemption, or consolidation of shares to reflect the current shareholding