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Wrong folio numbers alloted

Mishu (CA) (95 Points)

10 October 2011

Hi everyone,

i have a query, regarding folio no. alloted to shareholders

the folio no. are wrongly alloted by the RTA as 1, 2 ,3 whereas it should have been starting alphabetically i.e. A00001, B000705 etc.

Now company wants to change the folio no. on the share certificates alloted to shareholders.

Please let me know how we can do this. the company is public unlisted company with approx 4000 shareholders.

please consider this as urgent

Thanks

Meeshu Jain

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5 Replies

ars (CS) (445 Points)
Replied 11 October 2011

If it is purely typographical error on the certificates and the ROM is bearing the inteded or actual folio no. then you should call back the share certf. by writing a letter and rectify your error, by issuing new certif. keeping the certf. no. and distinctive no. unchanged.

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Mishu (CA) (95 Points)
Replied 16 November 2011

no we can not consider this as typographical error.. actually old folio nos. are starting alphabetically i.e. A00001, B000705 etc.

whereas RTA has started giving the new shareholder folio nos. from 1 ,2 ,3 etc (i.e. the transfer cases)

Now company has two kind of folio nos. 1st starting alphabetically and 2nd numeric

please advice should i ask the shareholders (i.e. transfer cases) to send their share certificates back to the company for alloting them new folio nos. as alphabetically.

please advice

ars (CS) (445 Points)
Replied 17 November 2011

Pl. note that there is no rule / regulations in this regard.

folio is just a unique id. it is used for recognising the person to whom the shares are allotted and the shaeholders records are maintained with this uniue no.

So, what you have done is not a fault / crime. You have to make your decisiion whether to call back the certs or not, as far as your records are correct and providing true picure of each and every folio you need not worry. having two sets of foliio orders makes no difference.

Charu Srivastava (Company Secretary) (4210 Points)
Replied 18 November 2011

i am convinced with ars.there is no rule regarding folio number. Folio Number serves as a identity of the Shareholer.You can continue with the the same folio no and there is no default i this effect.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 18 November 2011

Agree with the view of Learned Members. There is no problem in such folio numbers allotted by the RTA. However, it should be in continuation but there is no problem. It is a unique folio number which is properly recorded on the register of members. So as i think there is no problem and no need to change the certificates.