How to issue share certificate


Company Director

Hello experts,

We two friends have registered a Pvt Ltd company with 1Lakh Capital in this January.

We both are the Directors as it was required and having 60% and 40% shares on it. We have deposited the amount at the business current account as proof of payment of our shares.

Now what we want to know:

1] Whether  Share Certificates for both are really needed?

2] As our CA advised to have SH-1 for just future need (if any issue occurs between both the Directors), whether any third Signatory is mandatory? If mandatory then can a Lawyer be the witness signatory? The CA said the SH-1 should be signed by us both.

Can we Print and issue the SH-1 without any Secretary, as the MCA rule says "the secretary or some other person appointed by the Board for the purpose. The two directors or their attorneys and the secretary or other person shall sign the share certificate."? 
In this case, if mandatory, whom we should authorize to sign the SH-1 as it says: "some other person appointed by the Board"?

 

Kindly advice.

 
Reply   
 
Company Director

Anyone there?

We shall pay for the service we will take on this issue.

 
Reply   
 
Associate

The Share Certificate is required to be issued to all those members who is holding equity shares in the Company.

For you Query 1 - Yes. You are required to issue share certificate within 60 days of your first board meeting in which allotment of shares with take place.

For your Query 2  - It shall be signed by at least 2 directors. If Company Secretary (CS) is not appointed, then not required to be sign by a CS .

 

Hope it resolve your query.


Total likes : 1 times

 
Reply   
 
Company Director

Originally posted by : Shrikant
For your Query 2  - It shall be signed by at least 2 directors. If Company Secretary (CS) is not appointed, then not required to be sign by a CS .

 

Hope it resolve your query.


Thanks for your reply.

I don't find logic to appoint a CS for a small Pvt Ltd company with 1Lakh 'Authorized Capital'. Nowhere MCA even defines any mandate for this.

 
Reply   
 
Company Secreatary

Yes, you are right as per the Companies Act  it is compulsory for all listed companies and other companies with a paid-up share capital of Rs. 5 crores or more to appoint a Company Secretary

 
Reply   
 
Company Director

Originally posted by : CS Malay M Pota
Yes, you are right as per the Companies Act  it is compulsory for all listed companies and other companies with a paid-up share capital of Rs. 5 crores or more to appoint a Company Secretary


That's what I was saying in that discussion too. 

Most private limited companies are with authorized capital below 50Lacs, though some takes CS, but CS is mainly for Big Private Limited companies and Public Limited Companies.

 

And Rs 1 Lac to Rs 20 Lac authorized capital is small company.

 

Anyway, thank you all for clarifying the query and doubts. 

 

PS: We came here for advice, and wherever we need we can take services from experts here. Hence we admire whatever is correct. Some try us to stay in fear after getting incorporated as if-"if we don't do this or that penalty and penalty .. blah blah.... "

 
Reply   
 
Company Secreatary

Always Wel come. We are here to give you legally proper and appropriate reply  .

 

Thank You.


Total likes : 1 times

 
Reply   
 
Company Director

Originally posted by : CS Malay M Pota
Always Wel come. We are here to give you legally proper and appropriate reply  .

 

Thank You.

It was nice and pleasant to talk to you here.yes

 
Reply   
 
Company Secreatary

Thank you again it is my pleasure.


Total likes : 1 times

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  

 


×

  CCI MENU