Share Certificates
A share certificate is a document that serves as proof of ownership of shares in a company. The certificate is issued by the company, and it lists the name of the shareholder, the number of shares owned, and the class of shares. Share certificates are important because they allow shareholders to exercise their rights, such as the right to vote or receive dividends. In addition, share certificates can be used as collateral for loans.
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Frequently Asked Question
What is a share certificate?
A share certificate is a legal document that proves ownership of shares in a firm/company. The company issues the certificate, which contains the shareholder’s name, the number of shares owned, and other crucial information. Share certificates are tangible evidence of ownership and may be utilized to transfer shares among owners.
What purpose does a share certificate serve?
A share certificate is necessary to prove ownership of shares. It can be difficult to transfer ownership or sell shares without a certificate. Share certificates also provide important information about a shareholder’s rights and obligations.
What are the benefits of having a share certificate?
There are several benefits of holding a share certificate in a Malaysian company. Firstly, it gives the shareholder evidence of their ownership of shares in the company. Secondly, it may provide certain rights and privileges, such as the right to attend and vote at shareholder meetings.
Thirdly, if the company is wound up, shareholders with share certificates are generally entitled to a higher priority in terms of receiving payouts from the company’s assets. This can be an essential consideration for investors looking to protect their investments. Finally, share certificates may also be transferable, which can be useful if shareholders wish to sell their shares at some point in the future.
Who issues the share certificate?
The company itself will issue the share certificate to shareholders. The directors of the company must sign the certificate. Once issued, the shareholder becomes the legal owner of the shares.
What happens if I lose my share certificate?
If you lose your share certificate, you should contact the company as soon as possible. The company will then issue a replacement certificate. There may be a fee for this service. It is essential to keep your share certificates in a safe place, as they are valuable documents.
I am a shareholder in a Malaysian company. Do I need to have a share certificate?
Shareholders don’t need a share certificate, but it is generally advisable. Share certificates provide evidence of ownership and can be used to transfer shares or pledge them as collateral for a loan. In addition, shareholder rights and privileges may be set out in the share certificate. Therefore, obtaining a share certificate is generally in the shareholder’s best interests.
How can I get a share certificate?
If you are a shareholder in a Malaysian company, you would have received a share certificate evidencing your ownership of shares in that company. The certificate should bear the company’s name, the shareholder’s number of shares, and the class and series of shares owned.
If you have misplaced or lost your share certificate, you can request a duplicate from the company’s registrar. There may be a fee for this service. Alternatively, some shareholders store their share certificates in a safe deposit box or with another trusted person or entity.