02 July 2010
Dear Sir, Plz suggest what is the applicable rules for share certificate to be signed..... A co. newly registered 100 Blank certificate printed who can sign on it its a pvt. ltd. co. CAn total blank certificate first signed or signed when issue made?
02 July 2010
The following para 6 of Companies (Issue of Share Certificates) Rules, 1960 will help you in the matter.
Sealing and Signing of Certificate.- Every share certificate shall be issued under the seal of the company, which shall be affixed in the presence of (i) two directors or persons acting on behalf of the directors under a duly registered power-of-attorney ; and (ii) the secretary or some other person appointed by the Board for the purpose. The two directors or their attorneys and the secretary or other person shall sign the share certificate. Provided that, if the composition of the Board permits of it, at least one of the aforesaid two directors shall be a person other than a managing or whole-time director.
Explanation.-For the purpose of this rule, a director may sign a share certificate by affixing his signature thereon by means of any machine, equipment or other mechanical means such as engraving in metal or lithography but not by means of a rubber stamp, provided that the director shall be responsible for the safe custody of such machine, equipment or other material used for the purpose.
02 July 2010
Well explained by Mr. Rasesh. Share Certificate is to be signed when it is issued. Blank Certificate is not to signed for better management.
CAclubindia
