Company formation FAQ - Share Certificates
The company must issue each shareholder, free of charge, with one or more certificates in respect of the shares which that shareholder holds. Every certificate must specify: -
- In respect of how many shares, of what class, it is issued;
- The nominal value of those shares;
- That the shares are fully paid; and
- Any distinguishing numbers assigned to them.
No certificate may be issued in respect of shares of more than one class. If more than one person holds a share, only one certificate may be issued in respect of it. Certificates must: -
- Have affixed to them the company's common seal; or
- Be otherwise executed in accordance with the Companies Acts.
Replacement share certificates
If a certificate issued in respect of a shareholder's shares is:
- Damaged or defaced; or
- Said to be lost, stolen or destroyed;
- That shareholder is entitled to be issued with a replacement certificate in respect of the same shares.
A shareholder exercising the right to be issued with such a replacement certificate: -
- May at the same time exercise the right to be issued with a single certificate or separate certificates;
- Must return the certificate which is to be replaced to the company if it is damaged or defaced; and
- Must comply with such conditions as to evidence, indemnity and the payment of a reasonable fee as the directors decide.