Share Certificates: Proof of Corporate Ownership
Definition and Purpose
A share certificate is a formal document issued by a corporation that serves as legal evidence of ownership of a specific number of shares in the company. It acts as a receipt for the shareholder’s purchase and establishes their ownership of the specified shares.
Contents of a Share Certificate
Key information included on a share certificate typically includes:
Key Facts
- Definition: A share certificate is a written document issued by a corporation that serves as legal proof of ownership of a specific number of shares in the company.
- Purpose: Share certificates are issued to shareholders as a receipt of their purchase and to establish their ownership of a certain number of shares in the company.
- Contents: A share certificate typically includes important information such as the certificate number, company name and registration number, shareholder name and address, number of shares owned, class of shares, issue date of shares, and amount paid for the shares.
- Types of Documents: In addition to share certificates, other incorporation documents may also be relevant to ownership in a corporation. These include the Certificate of Incorporation, Memorandum of Association, Articles of Association, and Statutory Registers.
- Digitalization: In today’s financial world, physical share certificates are issued rarely, with digital records replacing them in most cases.
- Replacement: If a share certificate is damaged, lost, or stolen, it can be reissued with a replacement certificate in respect of the same number of shares. The shareholder must return the damaged document to the company before a replacement can be issued.
- Certificate number
- Company name and registration number
- Shareholder name and address
- Number of shares owned
- Class of shares
- Issue date of shares
- Amount paid for the shares
Types of Incorporation Documents
In addition to share certificates, other incorporation documents may also be relevant to ownership in a corporation. These include:
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Statutory Registers
Digitalization and Replacement
In modern financial markets, physical share certificates are rarely issued. Digital records have largely replaced them, providing a more efficient and secure method of ownership verification.
If a share certificate is damaged, lost, or stolen, it can be reissued with a replacement certificate in respect of the same number of shares. The shareholder must return the damaged document to the company before a replacement can be issued.
Sources
- Wolters Kluwer: Obtain Your Business Ownership Certificates
- Ansarada: Company Incorporation Documents & Registration Papers
- Investopedia: Share Certificate: Definition, How They Work, and Key Information
FAQs
What is a share certificate?
A share certificate is a formal document issued by a corporation that serves as legal evidence of ownership of a specific number of shares in the company.
What information is typically included on a share certificate?
Key information included on a share certificate typically includes the certificate number, company name and registration number, shareholder name and address, number of shares owned, class of shares, issue date of shares, and amount paid for the shares.
What are other types of incorporation documents that may be relevant to ownership in a corporation?
In addition to share certificates, other incorporation documents that may be relevant to ownership in a corporation include the Certificate of Incorporation, Memorandum of Association, Articles of Association, and Statutory Registers.
Are physical share certificates still commonly issued?
In today’s financial markets, physical share certificates are rarely issued. Digital records have largely replaced them, providing a more efficient and secure method of ownership verification.
What should I do if my share certificate is damaged, lost, or stolen?
If a share certificate is damaged, lost, or stolen, it can be reissued with a replacement certificate in respect of the same number of shares. The shareholder must return the damaged document to the company before a replacement can be issued.