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Questions and Answers
What is the penalty for a company that fails to comply with the requirements regarding the statement of the authorised capital?
What is the penalty for a company that fails to comply with the requirements regarding the statement of the authorised capital?
Which document must be surrendered to issue a share certificate?
Which document must be surrendered to issue a share certificate?
Which individuals' signatures must be included on a share certificate?
Which individuals' signatures must be included on a share certificate?
In case of a One Person Company, which of the following is sufficient for signing a share certificate?
In case of a One Person Company, which of the following is sufficient for signing a share certificate?
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What is required for a share certificate to be considered signed if a director’s signature is printed on it?
What is required for a share certificate to be considered signed if a director’s signature is printed on it?
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What should be done if the old share certificate is lost or destroyed?
What should be done if the old share certificate is lost or destroyed?
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What must be entered into the Register of Members concerning share certificates?
What must be entered into the Register of Members concerning share certificates?
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How is a penalty incurred by an officer of the company for defaults related to capital statement?
How is a penalty incurred by an officer of the company for defaults related to capital statement?
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Study Notes
Authorized Capital and Subscribed Capital Statement Requirements
- Companies must prominently display both authorized capital and subscribed capital amounts in notices, advertisements, business letters, and billheads.
- Failure to comply results in a ₹10,000 penalty for the company and a ₹5,000 penalty for each defaulting officer.
Share Certificate Issue Provisions
- Requirements: Board resolution, letter of allotment (or fractional coupons) surrender. Lost/destroyed letters may have special terms imposed.
- Format: Form SH-1, specifying owner, shares, and paid-up amount.
- Signatures: Two directors, or a director + CS (if appointed). Seal if the company uses one.
- One Person Companies: Signed by a director and CS, or authorized person.
- Facsimile Signatures: Allowed with machine/equipment (not rubber stamps), under director's personal responsibility.
- Register of Members: Share certificate details must be entered.
Renewed/Duplicate Share Certificate Provisions
- Renewal: Only upon surrender of the previous certificate.
- Fees: Maximum ₹50 per certificate.
- Lost/Destroyed Certificates: No issuance without board consent.
- Time Limits: Listed companies must issue duplicates within 45 days; unlisted companies within 3 months of complete document submission.
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Description
This quiz covers the essential requirements for displaying authorized and subscribed capital amounts in various company documents. It also addresses the provisions related to issuing share certificates, including necessary formats, signatories, and penalties for non-compliance.
