Share Certificate

A share certificate is a simple document that serves as official proof of a shareholder’s holding in a company. It is generally issued by the company secretary when the shareholder acquires the holding, whether it be through a share issue or transfer. The share certificate must be issued within two months of the acquisition.

Note that share certificates do not satisfy the requirement to give ASIC notice of the change in shareholding within 28 days of the acquisition. This notice must be given through their online portal.

A share certificate can be physical or digital. Digital certificates are more common these days, as they are easier to store.

Share certificates should also be given when a transfer results in an existing share certificate being outdated, so that every shareholder has their respective holding accurately reflected in their certificate.

This share certificate complies with the requirements of section 1070C of the Corporations Act for matters that must be specific in a share certificate.

Lawpath can assist with end-to-end share transfer requirements as part of its Company Changes service.

Use this Share Certificate if:

• There is a new shareholder purchasing shares in your business
• You need to specify the allocation of existing shares. This will involve the amount of shares allocated and the price that was paid for the shares. This is most important when outlining ownership of the business, where two or more business owners own the initial shares in the company.

What Does the Share Certificate Cover?

• The Certificate details the allocation of shares. This will include the number of shares, class of shares, and the amount paid for the allocated shares. The amount that is unpaid will also be outlined, although this may not be applicable in all cases
• The date on which the shares were allocated and the details of the shareholder
• The jurisdiction under which the Share Certificate has been made and in turn, the governing law.

Other Names for Share Certificate:

• Stock Certificate
• Certificate of stock.