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Other Names: Stock certificate Certificate of shares Certificate of stock

What is a Share Certificate?

A Share Certificate provides legal proof that the person named on it is a member (ie shareholder) of the stated company and holds shares in that company. A company must issue Share Certificates for its shareholders within two months of its formation or the date of a new share issue or transfer. An issue of shares only becomes binding on a new shareholder when the company notifies them with a Share Certificate.

When should I use a Share Certificate?

Use this Share Certificate to issue fully paid ordinary shares to:

new individual shareholders:
- in a recently formed private limited company
- in an existing private limited company issuing more shares
- receiving transferred shares
existing individual shareholders:
- receiving additional transferred shares
- that have lost their certificates