Company Capital and Share Certificate Regulations

A company must publicly disclose its authorized capital, subscribed capital, and paid-up capital in official publications, business letters, and other documents. Failure to comply with this requirement results in penalties for the company and its officers.

The Board Resolution for share issuance must be passed, and the letter of allotment or fractional coupons must be submitted to the company. If the letter of allotment is lost, the Board can set reasonable terms.

Share certificates must be issued in Form No. SH-1, specifying the shareholder's name, the shares they hold, and the amount paid up.

Share certificates must be signed by two directors or a director and the Company Secretary. If the company has a common seal, it must be affixed in the presence of the required signatories.

For One Person Companies, a single director's signature, along with the Company Secretary or an authorized person, is sufficient for share certificates.

A director's facsimile signature, created using a machine or other means, is treated as a valid signature on a share certificate, but the director is personally responsible for its use and security. Rubber stamps are not accepted.

Details of share certificates must be recorded in the Register of Members, which serves as the official record of company share ownership.

Renewal of a share certificate can only be done by surrendering the old certificate. This prevents the issuance of duplicate certificates and protects against fraud.