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A Share Certificate outlines the shareholder and their respective allocation and ownership of shares within the company. The Certificate is a legal proof of registered ownership that is signed between respective parties, including the company’s director. It details the shares that are allocated, the class of the shares and the amount paid for the shares. The Certificate often includes the legal jurisdiction in which the agreement takes place.
Use this Share Certificate if:
- There is a new shareholder purchasing shares in your business
- You need to specify the allocation of existing shares. This will involve the amount of shares allocated and the price that was paid for the shares. This is most important when outlining ownership of the business, where two or more business owners own the initial shares in the company.
What Does the Share Certificate Cover?
- The Certificate details the allocation of shares. This will include the number of shares, class of shares, and the amount paid for the allocated shares. The amount that is unpaid will also be outlined, although this may not be applicable in all cases
- The date on which the shares were allocated and the details of the shareholder
- The jurisdiction under which the Share Certificate has been made and in turn, the governing law.
Other Names for Share Certificate:
- Stock Certificate
- Certificate of stock.
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