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Question
Justify the following statement.
A company can issue duplicate share certificate.
Solution
Justification:
- A company can issue a duplicate share certificate if the Original share certificate has been defaced,
- mutilated or torn and is surrendered to the company.
- It has been proved by the holder that the original share certificate is lost or destroyed. - In case of loss of share certificate, the company puts up a notice in the newspapers to announce the loss of the share certificate and asks the finder, if any, to return it to the company.
- If the company does not get any response from the public, within the specified time, then the company can issue a duplicate share certificate.
- A duplicate share certificate should be issued within three months from the date of application. The company issues it only to registered shareholders. Thus, it is rightly justified that, a company can issue a duplicate share certificate if the original certificate is lost, destroyed, or torn.
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| Shing Metal Ltd. Company has recently come out with its public offer through FPO. Their issue was over-subscribed. Now the Boord of Directors wants to start the allotment process. Please advise the Board on: |
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