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Justify the following statement. A company can issue duplicate share certificate. - Secretarial Practice

Short Note

Justify the following statement.

A company can issue duplicate share certificate.

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Solution

Justification:

  1. 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.
  2. 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.
  3. If the company does not get any response from the public, within the specified time, then the company can issue a duplicate share certificate.
  4. 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.
Concept: Share Certificate
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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 3 Issue of Shares
Exercise Q.6 | Q 5 | Page 67
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