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Question
Explain the following term/concept.
Share certificate
Solution
(a) Share certificate is a registered document of title to the shares issued by the company under its common seal, duly stamped by at least two directors and counter signed by the secretary of the company.
(b) It is issued by both public and private companies in respect of partly or fully paid up shares. Since it is a registered document of the title of share, it only is transferred by following the procedure laid down in Articles of Association.
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