If a Private company incorporated in Companie Act, 1956 forgots to issue share certificates what are the consequences? Also when & how later on share certificates can be issued??
Plz reply
15 Replies
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 23 February 2010
Time lines for Issue of Share certificate are governed by section 113. you may issue share certificate at a later date. But date on share certificate should be in accordance with section 113.
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 23 February 2010
If company was incorporated in year 2002 and till date it had not issued share certificate, then does that mean Company will be penalised U/s 113 and the company is Private Limited?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 23 February 2010
There is no question of penalty. For example if the date of allotment is 25.03.2002 then share certificate should be issued to the allottee with in 3 months of allotment as per section 113. So the last date for issue of certificate would be 24.06.2002.
So prepare your share certificate now in 2010 but the date on share certificate would be between 25.03.2002 to 24.06.2002.
However this is not a good practice. Next time be careful.
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 23 February 2010
Sir but what about franking?
Is there any other way
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 23 February 2010
Well for that check the stamping law in force in 2002 in your state. For example if we are in UP then Re. 1 stamping is enough on the share certificate.
Views of other members solicited in this regard.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 23 February 2010
Yes, the view of Mr. Ankur Garg is right. Certificates may be issued on the back date.However, as he already said, it is not a good practice.
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 23 February 2010
I agree that issue of share certificate in back date is solution but in that case what about stamp duty charges?
Becoz mere printing of share certificate is not issuance of certificate, we hav to get them stamped then only they will be called as share certificate.
Plz clear my doubt......
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 23 February 2010
Dear Poornima,
You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.
Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 23 February 2010
Dear Poornima,
You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.
Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 23 February 2010
Dear Poornima,
You have to just arrange for the blank share certificates. Then at the time of issue fill up the relevant details. The date of issue must be within 3 months as above Mr. Ankur Garg has already mentioned. Then, signatories 2 directors and 1 Company secretary or authorised signatory shall sign on it.
Stamping:- In case of UP Re.1/- revenue stamp for every Rs.1,000/- (including premium) and common seal.
Poornima
(Search on.... for knowledge)
(129 Points)
Replied 24 February 2010
Dear Ankur,
But as per my knowledge colour of revenue stamp changes in every year...
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 26 February 2010
I dont think so.... i am watching it in red color from a long time....... in UP
CS GK Murty
(Company Secretary)
(225 Points)
Replied 11 March 2011
Is there any specific provision as to the blank printed certificates, on allotment of shares be manually filled up and issued to the allottes.
Views of members are solicited.
Jayashree S Iyer
(Company Secretary)
(3224 Points)
Replied 12 March 2011
As per Companies (Issue of Share Certificates) Rules, 1960, all blank forms for issue of share certificates shall be printed and the printing shall be on the authority of the Board Resolution.
However blank columns in the share certificates shall be filled manually.
Recent Topics
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
Related Threads
CAclubindia
