Issue of Share Certificates

Time lines for Issue of Share certificate are governed by section 113. you may issue share certificate at a later date. But date on share certificate should be in accordance with section 113.

If company was incorporated in year 2002 and till date it had not issued share certificate, then does that mean Company will be penalised U/s 113 and the company is Private Limited?

There is no question of penalty. For example if the date of allotment is 25.03.2002 then share certificate should be issued to the allottee with in 3 months of allotment as per section 113. So the last date for issue of certificate would be 24.06.2002.

So prepare your share certificate now in 2010 but the date on share certificate would be between 25.03.2002 to 24.06.2002.

However this is not a good practice. Next time be careful.   

Sir but what about franking?

Is there any other way

Well for that check the stamping law in force in 2002 in your state. For example if we are in UP then Re. 1 stamping is enough on the share certificate.

Views of other members solicited in this regard.

Yes, the view of Mr. Ankur Garg is right.  Certificates may be issued on the back date.However, as he already said, it is not a good practice.

I agree that issue of share certificate in back date is solution but in that case what about stamp duty charges? 

Becoz mere printing of share certificate is not issuance of certificate, we hav to get them stamped then only they will be called as share certificate.

Plz clear my doubt......

Dear Poornima,

You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.

Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.

Dear Poornima,

You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.

Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.

Dear Poornima,

You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.

Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.

Dear Ankur,

But as per my knowledge colour of revenue stamp changes in every year...

I dont think so.... i am watching it in red color from a long time....... in UP

Is there any specific provision as to the blank printed certificates, on allotment of shares be manually filled up and issued to the allottes.

Views of members are solicited.

As per Companies (Issue of Share Certificates) Rules, 1960, all blank forms for issue of share certificates shall be printed and the printing shall be on the authority of the Board Resolution.

However blank columns in the share certificates shall be filled manually.