Share certificates are legal documents proving title (i.e. ownership) to shares. Paper share certificates are usually used by private companies and are delivered to the shareholder.
On the other hand, to facilitate the high volume of scripless trading, share certificates of public companies are issued and deposited electronically to the shareholder’s Central Depository account instead of given to those companies’ shareholders in hardcopy format.
Share certificates should contain the following information:
- The company’s name
- The company’s registration number
- The authority under which the company is constituted
- The company’s registered address
- The shareholder’s name
- Number of shares being issued
- The class of shares
- Whether the shares are fully or partly paid up and the amount (if any) unpaid on the shares
Template for Resolution to Issue Share Certificates
If you need a template for resolutions to issue share certificates, you can get one here.
For a guide on the usage and preparation of share certificates, click here.