Issue of duplicate share certificate
This query is : Resolved
18 October 2011
Dear Experts,
We are a public ltd co. with about 800 shareholders. had issued shares way back in 1968.
now the promoters of the Company are purchasing the shares of other shareholders.
However many of the shareholders who are also ex employees of the company have lost there share certificates.
the value of these shares are hardly about Rs. 500 to Rs. 1000.
hence all are not ready to follow the procedure for issue of duplicate share certificate as the cost is much higher than its value.
Can the Company waive the requirement of Public Notice and Indemnity in this case.
As if these shares are transferred, then a lot of cost to the Company can be saved due to reduction in number of shareholders.
kindly guide how company can go ahead with issueing duplicate share certificates...
We are a public ltd co. with about 800 shareholders. had issued shares way back in 1968.
now the promoters of the Company are purchasing the shares of other shareholders.
However many of the shareholders who are also ex employees of the company have lost there share certificates.
the value of these shares are hardly about Rs. 500 to Rs. 1000.
hence all are not ready to follow the procedure for issue of duplicate share certificate as the cost is much higher than its value.
Can the Company waive the requirement of Public Notice and Indemnity in this case.
As if these shares are transferred, then a lot of cost to the Company can be saved due to reduction in number of shareholders.
kindly guide how company can go ahead with issueing duplicate share certificates...
CS Pawan Kumar Baid
(Expert)
25 October 2011
Waiver of requirement of public notice and indemnity bond is upto BoD.
As Share certificate creates estoppel as to money paid and ownership, if later on any problem arise, directors will be deemed to be guilty of gross negligence.
As Share certificate creates estoppel as to money paid and ownership, if later on any problem arise, directors will be deemed to be guilty of gross negligence.
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