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Issue of Share Certificate after 15 years

Dheeraj (Associate) (30 Points)

20 May 2009

If a limited company had not issued share certificate since incorporation, Now 15 years have been passed. At present what is the remeady to issue share certificate and how? Is it possible that it pass a resolution that since all sharecertificate are lost therefore new share certificate are to be issued. or is there any other loophole?

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3 Replies

Gargi Ranade (CS) (619 Points)
Replied 22 May 2009

Hi sir,

as per my knowledge it is serious non-compliance on the part of the Company , kindly let me know other than share certificate have you compleated other formalities like form 2 for allotment (other than allotment at the time of incorporation) form 5 if there is any increase in auth. share capital,board meeting at the time of fresh issue and allotment , if u have missed only issue of certificate and have complied with other requirement then go for back dated arrangement however in the case of back dated arrangement stamping of share certificate is problamatic issue ; franking is not at all posiible.

It will be advisable not to go for duplicate issue as mentioned by you as mere board meeting resolution will not be sufficient for the same. you need to require detail stringent procedure to issue it as a duplicate.if u want detail I will post checklist .

please refer section 113 which mentions heavy penalty for non-compliance in subsection 2 and it also mentions it is compounadable offence u/s 621 ,so same will be other option.

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Arros (RM) (69 Points)
Replied 22 May 2009

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Gargi Ranade (CS) (619 Points)
Replied 25 May 2009

hi !!

Please refer the general procedure for duplicate share certificate, shareholder must file complaint in the police station for such loss ,then he should give advertisement to that effect in the news paper ,signing of indemnity bond is also one of the prerequisiteafetr following this procedure co. can issue shares mentioning on its face as " Duplicate ".

the better option is to get back dated signing of sharecertificate if co. is closely held or having good relation with shareholder ,in this case you will not able to get share certificate frank but you will always have option of revenue stamp..