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Issue of Duplicate Share Certificate: Complete Procedure

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A copy is made if the original share certificate is lost, destroyed, distorted, or harmed. In the view of the law, these copies show that you own shares in a company. Keeping a copy of your share certificate is important for protecting your investment and rights as a shareholder of the business. It ensures that owners can easily use their vote rights, get benefits, and participate in business choices. Also, having multiple share certificates guards you against scams or other bad uses of the original certificate. By learning how to get a duplicate share certificate, insiders can protect their rights and keep a safe record of how much stock they own in the company.

Laws and Rules

There are rules about how to give multiple share certificates in Section 46 of the Companies Act of 2013 and Rule 6 of the Companies’ Share Capital and Debentures Rules of 2014. There are also rules in Section 6 of the Indian Stamp Act of 1899. and Section 46 of the Companies Act of 2013 which says that a new certificate can be given if the original share certificate is lost, destroyed, messed up, or lost. Rule 6 of the Companies’ Share Capital and Debentures Rules of 2014 goes into deep depth about changing or making copies of share certificates. It lists the steps that need to be taken to send old certificates and get new ones.

Additionally, Section 6 of the Indian Stamp Act of 1899 handles the stamp duty effects related to the release of extra share certificates, ensuring compliance with stamp duty rules in such deals. These legal clauses combined form the regulatory framework for giving duplicate share certificates in India.

Process for Issue of Duplicate Share Certificate

Case 1: When Share Certificate is Forgotten or Damaged

  • Filing of an FIR: The owner of the share must report an FIR with all of the details about the lost share certificates.
  • Sending a Request Letter to the Company: The owner of the shares needs to send an acceptable Request Letter to the workplace with their Name, Address, Folio Number, Distinctive No., and Share Certificate Number in order to get a copy of the share certificate.
  • Indemnity Bond: The partner of the businesses needs to fill a Rs.100 Indemnity Bond on Non-Judicial Stamp Paper. This bond proves that the shareholder honestly does own the stocks and saves the company from any harm or loss that can appear due to the brand new certificates.
  • Approval from the Board of Directors: In order to start the Duplicate Share Certificate, the company will have to get approval from the Board of Directors, which is usually finished through a vote.
  • Issuance of Duplicate Share Certificate: Upon meeting the above situations and getting approval, the company will deliver the Duplicate Share Certificate to the owner.
  • Recording in Form No. SH-2: The particulars of the similar share certificates given shall be put in Form No. SH-2, giving proper papers and record-keeping.

Case 2: When the Certificate is Damaged, Disfigured, or Torn and Surrendered to the Company

  • Sending a Request Letter to the Company: The person who owns the shares should send the company a Request Letter with an insurance clause, along with the Original Share Certificate or some other proof that shows they are who they say they are. The letter should include the person’s address, folio number, unique number, and shared certificate number so that the company can issue a copy of the certificate.
  • Approval from the Board of Directors: For the company to release the Duplicate Share Certificate, it needs to get approval from the Board of Directors.
  • Giving Out Second Copy of Share Certificate: Once the approval is given, the company will continue to give the second copy of the share certificate to the shareholder.
  • Recording in Form No. SH-2: The information on the copy share certificates shall be put in Form No. SH-2, giving proper paperwork and complying with legal requirements.

The process of giving copied share certificates includes a number of steps that aim to check the shareholder’s claim, ensure compliance with legal rules, and keep accurate records of share ownership. By following these steps carefully, owners can protect their capital while protecting their rights in the company.

Documents Required

The papers needed for getting a copy share certificate in India include:

  1. Copy of F.I.R: A copy of the First Information Report made with the police regarding the lost share papers, showing the names of the shares.
  2. Indemnity Bond: An Indemnity Bond on judicial stamp paper of Rs. 500, providing that the shareholder will pay the company against any loss or damage from releasing a new certificate.
  3. Statement: A statement made on a non-judicial stamp paper of Rs. 100, confirming the information of the lost share certificate and the shareholder’s ownership.
  4. Security Bond: A security bond with the full name, address, and signature, along with proof of identity.
  5. Newspaper article: A story in a newspaper showing the loss of the share certificate should be released to the public.
  6. Request Letter: An official request for a duplicate share certificate that includes the shareholder’s name, address, and the number of shares for which the duplicate certificate is desired.

By giving these papers, owners can start the process of getting a copy share certificate that is in line with law requirements and business rules.

Steps to Submit an Application for a Duplicate Share Certificate

To apply for a copy share certificate, owners must take these steps:

  1. Get a Letter of Indemnity: This letter can be obtained from a Notary Public or a lawyer. It serves as a promise that the buyer is the true owner of the shares and will protect the company against any harm or loss from releasing a new certificate.
  2. Submit a Written Request for a duplicate Share Certificate: The request should include the shareholder’s name, address, and the number of shares they want a copy certificate.
  3. Wait for the company to go through the Request: The company will need to get internal approvals, check the papers given, and give the new certificate. The whole process can take four to six weeks to receive all needed papers.

Before starting the process, owners should check the company’s record for any other special needs. The papers needed for the release of a new share certificate in India include a copy of the F.I.R. made with the police regarding the lost share certificates, saying the names of the shares, and an Indemnity Bond on Non-Judicial Stamp Paper of Rs.100.

The time for Issue of Duplicate Share Certificate

The timing for giving a duplicate-share licence changes based on the specific conditions under which it is asked. In case the share certificate gets stolen or lost, the process generally includes:

  • Making an F.I.R. with the cops.
  • Sending a request letter to the company.
  • Giving an insurance bond.
  • Getting permission from the Board of Directors.

This process can take several weeks, and companies are expected to give the duplicate share certificate within 45 days of getting the right papers. The process is usually easier for broken, deformed, or torn share certificates that are given to the company. The shareholder sends a request letter to the company along with the original certificate, and the company takes clearance from the Board of Directors to release a copy of the certificate. The particulars of the copied share certificates given are put in Form No. SH-2, giving proper paperwork and compliance with regulatory standards.

It is critical to notice that the issue of your necessary share certificate is linked to the terms of the Companies Act, the Companies’ Share Capital and Debentures Rules, and the Indian Stamp Act. Shareholders and businesses need to comply with these steps carefully to make certain the legitimacy and legality of your given copy share certificate.

Conclusion

In conclusion, the process to gain a copy share certificate includes:

  • Filing an F.I.R. with the cops.
  • Sending a request letter.
  • Giving appropriate papers like a security bond.
  • Getting approval from the Board of Directors.

Following this right process is important to ensure the law and security of the duplicate share certificate. It protects owners’ investment and rights and helps prevent theft or abuse. For further help or explanation on this procedure, people can reach out to the company’s manager or seek ideas from legal experts such as Notaries Public or lawyers for specific advice and assistance in dealing with the process for the release of duplicate share certificates in India.

Sachin Jaiswal

Sachin Jaiswal B.A.(Hons)! Sachin Jaiswal has been writing material on his own for more than five years. He got his B.A.(Hons) in English from the well-known University of Delhi. His success in this job is due to the fact that he loves writing and making material that is interesting. He has worked with a lot of different clients in many different fields, always giving them high-quality content that their target audience will enjoy. Through his education and work experience, he is able to produce high-quality content that meets his clients' needs.