What are share certificates?
They are simply evidence of the fact you own shares in a company – but nothing more than evidence. The list of shareholders held by a company’s share registrar is a more definite proof of ownership. What happens if certificates are lost? As the certificate itself is only evidence, it can be replaced by a companies’ registrar. Call the company secretary’s office of the firm you own shares in and ask for the number of the registrar. The registrar will usually provide you with a ‘form of indemnity’. This is simply a piece of paper you sign to declare you are the rightful owner of the shares. This form will usually cost around 20. But it needs to be counter-signed by a bank, insurance company or trustee company – essentially an insurance policy for the registrar – in case the title to the shares is disputed. This is much more expensive with prices ranging from 20 to 90 depending on the value of the shares. What alternatives to share certificates are there? To buy and sell shares you must o
How do you make a stock transfer? Here is our guide to all you need to know about issuing shares in your business. Why should I be issuing shares? When you sell shares in your company, it’s a good way of raising long-term finance for your business, and you don’t have to repay the finance or pay interest on the investment as you would with an overdraft or bank loan. An individual who buys shares in your company will become one of the owners of the company. Shareholders choose who runs a company and are involved in making key decisions about the running of the business. People who run small businesses usually give out shares in their company in return for a lump sum investment. This may either be from friends and family, or from outside investors looking for a high yield. How do you go about issuing shares? When you first set up your company, whether it’s an unlimited or limited company, you can decide on the level of share capital – the company’s authorised capital – and its division in
