{"id":110807,"date":"2022-11-02T17:41:34","date_gmt":"2022-11-02T12:11:34","guid":{"rendered":"https:\/\/legalwindow.in\/?p=110807"},"modified":"2022-12-22T15:10:04","modified_gmt":"2022-12-22T09:40:04","slug":"procedure-for-issue-of-duplicate-share-certificate","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/procedure-for-issue-of-duplicate-share-certificate\/","title":{"rendered":"Procedure for Issue of Duplicate Share Certificate in India"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-110812 size-full\" title=\"Procedure For Issue of Duplicate Share Certificate\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India.png\" alt=\"Procedure For Issue of Duplicate Share Certificate\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Issue-of-Duplicate-Share-Certificate-in-India-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/>Share certificates issued by the Company are sometimes lost or misplaced by the shareholders due to unforeseen circumstances. The loss of share certificates can lead to huge financial losses for both the shareholders and the company. To avoid unnecessary losses to shareholders and society, the remedy is provided by the central government. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\" target=\"_blank\" rel=\"noopener\">Companies Act<\/a> 2013 contains a provision for the procedure\u00a0For Issue of Duplicate Share Certificate under section 46 read with rule 6 of the Companies (Share Capital and Debentures) Rules 2014 in the event of loss or misappropriation of the original share certificate Shareholder.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, let us have a look at the Procedure for the Issue of Duplicate Share Certificates.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><b>Table of Contents<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#a\"><span style=\"font-weight: 400;\">What is a share certificate?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Mandatory\"><span style=\"font-weight: 400;\">Mandatory Requirement<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">Responsibility of Shareholder<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#be\"><span style=\"font-weight: 400;\">Steps to be taken by the company<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#to\"><span style=\"font-weight: 400;\">What documents are required to issue a duplicate share certificate?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#share\"><span style=\"font-weight: 400;\">Procedure to issue a duplicate share certificate<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#Final\"><span style=\"font-weight: 400;\">Final words<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"a\"><b>What is a share certificate?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Company issues a Share Certificate to certify that, from the date, the certificate is issued to a person, that person is the registered owner of Company Shares. A share certificate issued by the Company is prima facie evidence of a member&#8217;s ownership of Company Shares. Share certificates proved a person&#8217;s ownership in the Company. The loss and misplacement of the Share Certificate will have a financial impact on the Shareholder as there will be no proof of its ownership. The company will issue a duplicate share certificate in case of loss or misappropriation of the original.<\/span><\/p>\n<h2 id=\"Mandatory\"><b>Mandatory Requirement<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exhorting a stockholder for such defiling, mutilating, or ravaging the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ration sheets or fractional coupons of the required value are to be handed over to the company.<\/span><\/li>\n<\/ul>\n<h2 id=\"of\"><b>Responsibility of Shareholder<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If a share certificate is lost or misplaced, shareholders should take the following steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Shareholder should immediately inform the Company of the loss or loss of the Share Certificate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Communication of information can be done by letter to the Company&#8217;s address or e-mail can be sent to the Company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of lost or misplaced share certificates such as name, address, folio number, and share certificate number.<\/span><\/li>\n<\/ul>\n<h2 id=\"be\"><b>Steps to be taken by the company<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The company should take the following steps after losing or misplacing a share certificate:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once the company receives the information about lost or misplaced share certificates, it should freeze the transfer for at least 30 days to avoid any fraudulent transfer or illegal transfer procedure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After completing the company registration procedure, the entity should guide the shareholder to issue a duplicate share certificate once the identity of the shareholder is established.<\/span><\/li>\n<\/ul>\n<h2 id=\"to\"><b>What documents are required to issue a duplicate share certificate?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The documents required for issuing a duplicate share certificate are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepare the Agreement to provide a guarantee for out-of-court stamp paper.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The affidavit is made on a non-judicial stamp paper of amount Rs.100.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An F.I.R should be filed with the police with complete information about the lost share certificate. The details required for the share certificate are as follows:<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name on the share certificate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The folio number on the shared certificate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Share certificate number<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A significant number of shares<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An advertisement should be published in the newspaper about the loss of the share certificate.<\/span><\/li>\n<\/ul>\n<h2 id=\"share\"><b>Procedure to issue a duplicate share certificate<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The procedure for issuing a duplicate share certificate is as follows: An application for the issue of a duplicate share certificate is submitted by a shareholder of the company with the required documents.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Upon receipt of the request by the Company, the process of issuing a duplicate share certificate can be initiated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The issuance of a duplicate certificate will be done with the approval of the company&#8217;s board of directors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In approving the issue of a duplicate share certificate, the board should consider the following:<\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The charges should be taken as the Board thinks fit but the charges should not exceed 50 rupees per share certificate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Out-of-pocket expenses incurred in investigating the evidence submitted by the Shareholder should also be taken into account by the Board of Directors when issuing a duplicate share certificate by the Company.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After receiving the approval of the board of directors, the process of issuing a duplicate share certificate can be started.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company will check all the documents and issue the Share Certificate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The issuance of the duplicate share certificate should be completed within 4 to 6 weeks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A duplicate share certificate will be issued to the listed company within 45 days from the date of submission of the documents to the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An unlisted company will be issued a duplicate share certificate within 3 months from the date of submission of company documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once the issue of the duplicate share certificate is made, entries should be made in the register of renewed and duplicate shares on Form SH-2.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The SH-2 format is prescribed in the Companies (Share Capital and Debentures) Rules, 2014.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The duplicate share certificate should contain the following lines &#8220;Duplicate issued in lieu of share certificate No&#8230;.&#8221; and the word &#8220;Duplicate&#8221; should be printed or stamped in block letters on the share certificate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The register should be kept at the registered office of the Company or where the Company maintains a register of members or may be kept by the Secretary of the Company or anyone authorized by the <a href=\"https:\/\/legalwindow.in\/composition-of-board-of-directors-under-company-law\/\" target=\"_blank\" rel=\"noopener\">Board of Directors<\/a>.<\/span><\/li>\n<\/ul>\n<h2 id=\"Final\"><b><a href=\"https:\/\/legalwindow.in\/share-transfer\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-111402 size-full\" title=\"transfer of shares \" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/transfer-of-shares-starting-from-1500.png\" alt=\"transfer of shares \" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/transfer-of-shares-starting-from-1500.png 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/transfer-of-shares-starting-from-1500-600x120.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/transfer-of-shares-starting-from-1500-300x60.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/transfer-of-shares-starting-from-1500-768x154.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a>Final words<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The share certificate is proof of shareholder ownership of the Share. In case of loss or misplacement of the Share Certificate, to avoid any financial loss to the Company and the Shareholders, a duplicate Share Certificate should be issued. The process of issuing a share certificate is lengthy and long-term. Legal Window has experts who can help you with the process and ensure that the work is completed within the stipulated time.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Share certificates issued by the Company are sometimes lost or misplaced by the shareholders due to unforeseen circumstances. The loss of share certificates can lead to huge financial&hellip;<\/p>\n","protected":false},"author":5,"featured_media":110811,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-110807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Procedure For Issue of Duplicate Share Certificate &#187; Legal Window<\/title>\n<meta name=\"description\" content=\"This article briefly explains the Procedure For Issue of Duplicate Share Certificate, &amp; the Responsibility of Shareholders.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalwindow.in\/blog\/procedure-for-issue-of-duplicate-share-certificate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Procedure For Issue of Duplicate Share Certificate &#187; 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