Issue of Share Certificate

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2010 Within what time the share cerificate is to be issued to subscribers to the Memorandum?
Whether the time limit is different if it's the further allotment?
Also kindly clarify the date to be mentioned in the share cerificate (incorporation date or the Board meeting Date)?

Ankur Garg

Ankur Garg (Expert)
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13 September 2010 Hi,

Subscribers of MOA are deemed shareholders of the company. They don't need to take shares. As soon as they subscribe the MOA & file it with ROC along with other incorporation documents they become the members as well as shareholders of the company. Appreciate further have you ever filed form-2 for the subscribers? The answer would be No. That itself is a kind of proof that no allotment is required to be made to the subscribers.

Form-2 is not required to be filed for subscribers hence no formal allotment is required in case of subscribers. They are deemed members and shareholders of the Company.

DATE OF ALLOTMENT TO SUBSCRIBERS AND DATE TO BE MENTIONED ON SHARE CERTIFICATE

Date of allotment to subscribers will be the date of incorporation of the company and the same date will also be used for printing on share certificate to be issued to subscribers.

Practically & legally this is very much possible. To conclude you may use Date of Incorporation of the company for the purpose of:

1. Printing on share certificate of subscribers
2. as date of Allotment to subscribers
3. For the purpose of filling the column in register of member to enter the name of subscribers.

Even if you receive the amount from subscribers after 6 months the date of deemed Allotment and date on share certificate would remain the same i.e. date of incorporation of the company.

In case of any doubt please post it. I’ll definitely try my best to solve it.

Best Regards

Ankur Garg

Ankur Garg (Expert)
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13 September 2010 General time lines for issue of share certificate are governed by section 113 as detailed below:

Limitation of time for issue of certificate

Section 113(1) Every company, shall,

1. within three months after the allotment of any of its shares, debentures or debenture stock,

2. and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock,

deliver, in accordance with the procedure laid down in section 53, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred.

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2010 Dear Ankur Sir,

Our Company was incorporated on 06.07.2010. The share certificate is not yet issued. I can issue the certificates within 06.10.2010 right?

Kindly tell how i have to pay the stamp duty?

Ankur Garg

Ankur Garg (Expert)
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13 September 2010 You may issue the certificate today but date on certificate should be the date of first board meeting in which subscription by subscribers took note by the board.

Also put one resolution for the same in minutes of first BM.

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2010 Dear Sir,

What about the stamp duty?

Jagruti (CS)

Jagruti (CS) (Expert)
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13 September 2010 As time period for the issue of sharecertificate is not expired get the certificate franked and issued on todays date. thus there will be no non compliance for the same

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2010 Dear Ma'am

Kindly clarify, Franking of share certificate is to be done before signing by the directors & authorised signatory?

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Jagruti (CS)

Jagruti (CS) (Expert)
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16 September 2010 Yes, franking need to be done before filing any details in share certificate & before signing. If u sign than authority will not frank the same.

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