Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Share certificate

Niral Patel (job) (89 Points)

04 June 2016

The company had converted from private limited to public limited. And then after it had issued right issue. But Company gave certificate from the Old Share Certificate book (having the word private Ltd. at the end). is it ok or Company has to give fresh Share certificate.

Reply
Follow
Share

2 Replies

Jatin Bajaj (CS) (2930 Points)
Replied 05 June 2016

it is not ok. According to section 46 of Companies Act 2013, Reas with Rule 6 of Share capital and Debenture rules,

A Company may replace all the the existing share certificates by new certificates upon consolidation, subdivision,merger, demerger or any reconstitution without requring old certificates to be surrendered subject to compliance with rule 5(1) clause a, rule 5(2) and rule 5(3)

CS Arjun Rajagopal (B.com, ACS) (1056 Points)
Replied 05 June 2016

Originally posted by : Jatin Bajaj
	it is not ok. According to section 46 of Companies Act 2013, Reas with Rule 6 of Share capital and Debenture rules, A Company may replace all the the existing share certificates by new certificates upon consolidation, subdivision,merger, demerger or any reconstitution without requring old certificates to be surrendered subject to compliance with rule 5(1) clause a, rule 5(2) and rule 5(3)