ISSUE OF DUPLICATE SHARE CERTIFICATES
Statutes Involved :
????? Section 84 of the Companies Act, 1956
????? Listing Agreement
????? Rule 4(2)(3) & Rule 7(1) of the Companies (Issue of Share Certificate) , Rules 1960
Procedure Involved :
?? Whenever the Company receives any request for issue of Duplicate Share Certificate, in lieu of the lost one, the Company shall ensure that the Original Share Certificate does not exist.
?? The Company shall request for the Affidavit and Indemnity Bond, that the original Share Certificate has been lost. The Company can also request for the FIR of the lost Share Certificate (Depending upon the policy of the Company)
?? Such power to demand the indemnity from the shareholder vests with the Board of Director which may or may not demand the same. Nothing is statutorily required. Thus, normally in the case of small companies such requirements are dispensed with.
?? After the Company receives the request for issue of Duplicate Share Certificate, it shall come up with a newspaper advertisement stating the distinctive number, Company?s intention to issue Duplicate Share Certificate and inviting objection for the same. The advertisement can be made in the newspaper of nation-wide circulation. The Company shall specify the time duration for entertaining the objection.
?? Such public announcement or advertisement is generally done in large companies or large holdings. The expenses of such publication are to be borne by the Shareholder.
?? After ascertaining the authenticity of the request, the Company shall issue Duplicate Share Certificate in lieu of the lost one.
?? Important to note that for every issue of duplicate share certificate, prior resolution of the Board or a Committee is essential.
?? For Listed Company, no fees shall be charges. Unlisted Company can charge a fees not exceeding Rs. 2/- per share certificate.
?? On the face of Duplicate Share Certificate, it have to be mentioned that it is issued in lieu of the original one and on the middle of Share Certificate., word ?DUPLICATE? shall be engraved.
?? Finally, the Duplicate Share Certificate shall be stamped and signed as per abovementioned Rules.
?? A new Register ?Register of renewed and duplicate share certificates? shall be created and entries shall be made in it.
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