Share Certificate
A Share Certificate is a document signed on behalf of the company as legal proof of ownership over the indicated number of shares.
Last updated December 17, 2024
Suitable for Australia
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What is a share certificate?
What is a share certificate?
A share certificate is an official document issued by a company as evidence of ownership of a specific number of shares held by a shareholder.
It states the shareholder's name, the number and class of shares, the amount paid or unpaid, and the date of allocation, and is signed on behalf of the company.
Is a share certificate legally binding?
Is a share certificate legally binding?
A share certificate isn't a contract in the usual sense, but it is legal evidence of share ownership under section 1070C of the Corporations Act, enforceable as prima facie proof of title unless the company can show otherwise.
The actual legal record of who owns what is the company's share register, which the certificate reflects rather than replaces.
How long does a company have to issue a share certificate?
How long does a company have to issue a share certificate?
A company must issue a share certificate within two months of allotting new shares or registering a transfer, under section 1070D of the Corporations Act.
Missing this deadline doesn't undo the share issue itself, but it leaves the shareholder without formal evidence of their holding in the meantime.
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Frequently asked questions
Does issuing a share certificate replace updating the share register?
keyboard_arrow_upDoes a share certificate meet legal requirements in Australia?
keyboard_arrow_upCan a share certificate be used for both new issues and share transfers?
keyboard_arrow_upIs a share certificate suitable for digital or physical issuance?
keyboard_arrow_upWhat information must be checked before issuing a share certificate?
keyboard_arrow_upWhat happens if a share certificate is lost or damaged?
keyboard_arrow_upWhat's the most common mistake companies make with share certificates?
keyboard_arrow_upWhat are the next steps after preparing a share certificate?
keyboard_arrow_upHow do you issue a share certificate?
keyboard_arrow_upHow long does it take to create a share certificate?
keyboard_arrow_upHow much does it cost to get a share certificate, template versus a lawyer?
keyboard_arrow_upView Sample Share Certificate
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