Most companies have shareholders, which are defined as individuals or institutions that own all or part of the company. Shareholders legally own one or more shares of stock in the company, whether it is a private or public institution. They stand to profit if the company does well but will conversely lose out if the company suffers from poor performance. Any company which has shareholders will have need of share certificate books.
Every shareholder with shares in the business should be recorded in the company register and consequently issued with a share certificate as proof of their share-holding within the company. Many company directors are still blissfully unaware of the obligations they are under with regards to their shareholders, such as maintaining a register of shareholders and keeping the minute books and other company stationery open for inspection by shareholders.
Share certificate books are typically A4 hardbound booklets that contain a number of share certificates that can be easily detached via a perforated strip. The share certificates are printed with the fields you need to fill in but are otherwise blank so that you may complete the necessary information.
A share certificate will need to be completed for each shareholder detailing the certificate number, the company name, the number of shares held and the shareholder's name and address. You should also enter the date on the certificate to denote when it was issued and arrange for the director and secretary, if one has been appointed, to sign the document before it is removed from the booklet and issued to the shareholder.
Share certificate books also come with a useful stub so you can record when the share certificate was issued and keep it for future reference. You should also record the issuing of share certificates in the company register.
Share certificates can be downloaded online as electronic documents but many companies prefer the traditional share certificate books to record the issue of their company shares, especially since the stubs provide a useful reference tool.
Author Resource:-
If your business needs to issue certificates to shareholders make sure you first visit the Charringdene website where you can order your share certificate books.
![[Valid RSS feed]](http://www.articlelayout.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
