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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 the share certificate will show:
- Share certificate number (this must be unique)
- Name of the company
- Registration number of the company
- Street and postal address of the company
- Person to whom the share certificate is issued information
- Owner street address
- Number of shares issued
The share certificate must be signed by the company director(s) and where applicable the company secretary. The information of all share certificates issued must be recorded in the company share register.
Preferably the company stamp must also be placed on the certificate.
A company authorized shares as per COR15.1A = 1,000 shares
The total issued shares as per the Share Certificates = 700 shares
Shareholder A is a 40% owner (700 x 40% = 280 shares issued)
Shareholder B is a 10% owner (700 x 10% = 70 shares issued)
Shareholder C is a 50% owner (700 x 50% = 350 shares issued)
The % ownership must always add up to 100%
Share Certificate No 001 for Shareholder A will show 280 shares.
Share Certificate No 002 for Shareholder B will show 70 shares.
Share Certificate No 003 for Shareholder C will show 350 shares.
The company will still have another 300 shares available to issue.