What will you do if you lose an important document like your share certificate? The thought itself can prove to be a nightmare as there are chances of the document being misused—leading to a financial loss. This article elaborates on the steps you should take to get duplicate share certificates from the company / registrars to avoid any financial loss.
If you have lost or misplaced your share certificates of any listed company, you need to immediately inform the respective company—of which you had the shares. You also need to quote the folio number and details of share certificates to the company for their reference. When a company receives an intimation that you have lost the shares, the folio number or the details provided to the company are frozen—in lieu of the lost one. This is done by the company to prevent any fraud or transfer of shares.
The company sends you the procedure on how to issue duplicate share certificate which includes prepare an affidavit, surety and indemnity bond agreement. The company— in a letter—mentions you how carry out the procedure for issue of duplicate certificates. You will then have to prepare an affidavit, indemnity bond agreement with franking of around Rs. 300. You also need to get the affidavit & surety bond notarized. To add credibility, this indemnity & surety bond should be signed by two witnesses—who are not your family members. Remember to get the duplicate share certificate, it is essential to provide an indemnity and surety bond.
Upon receipt of these completed documents, you will have to file an FIR (first information report) with the police listing details of lost share certificates such as the folio no., company name, share certificate number and distinctive number of shares, etc.
You now need to publish a general notice in a government gazette declaring the loss of share certificates. The notice should contain the details of shareholder, share certificate numbers and distinctive numbers of shares lost.
It is usual to publish a general notice in a government gazette—in the place of the registered office—intimating the public of the loss of the share certificate and of the company’s proposal to consider issue of a duplicate share certificate, in lieu of the one that is lost.
The cost of the publication of the general notice is normally borne by the shareholder. You should send the documents to the company / registrars for issue of duplicate share certificates accompanied by, affidavit, indemnity & surety bond and original copy of FIR of police complaint reporting loss of share certificates and voucher copy of advertisement released in the government gazette publication regarding loss of share certificates.
After verification of the documents submitted, the company / registrars will process the requests for duplicate issue of share certificate. This process normally takes four to six weeks for the shareholders to receive duplicates from the date of receipt of all the valid documents by the company / registrars. Keep in mind that for every issue of duplicate share certificate, prior resolution of the company board or a committee is essential.
The following words shall be written on the face of the duplicate share certificate, ‘Duplicate issued in lieu of share certificate No XXX’ and the word ‘DUPLICATE’ will be stamped in bold letters across the face of the share certificate. Particulars of duplicate share certificates issued will be entered in the register of renewed and duplicate share certificates indicating the name of the shareholder to whom it is issued, the number and date of the new share certificate.
Intimation shall also be given to all stock exchanges where the shares of the company are listed regarding issue of duplicate share certificate and cancellation of old share certificate.
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