What is a Share Certificate:
A share certificate (also sometimes referred to as a stock certificate) is a document that is issued by a company to certify the ownership of shares in that company. The owner of a share certificate can be a person or any registered entity.
The information on our share certificate will show the:
- share certificate number (this must be unique)
- name of the company
- registration number of the company
- person full name and ID number to whom the share certificate is issued
- the number of shares issued
1. All companies must keep proper record of share issued.
2. The share certificate must be signed by the company director(s) and where applicable the company secretary or witness.
3. All shares issued must be recorded in the Company Share Register Book
4. Each share certificate is unique, must have its own sequential number and may not be duplicated and/or amended)
5. At any time there may only be one original signed share certificate.
6. The original share certificate must be kept in a safe place.
Example of Shareholder ownership in a company:
Authorized shares as per the COR15.1A = 1,000 shares
Total issued shares as per Share Certificates = 700
Shareholder A = 40% owner (700 x 40% = 280 shares)
Shareholder B = 10% owner (700 x 10% = 70 shares)
Shareholder C = 50% owner (700 x 50% = 350 shares)
The % ownership must always add up to 100%
Shareholder A share certificate 001 = 280 shares.
Shareholder B share certificate 002 = 70 shares.
Shareholder C share certificate 003 = 350 shares.
The company will still have another 300 shares available to issue.