Share Certificate

Before we know the share certificate, we must first understand what the share is; in the stock
market, share means a particular part of a company's ownership.

The capital of private and public limited companies is divided into many units. Each unit is
called a share. How many shares a company will have depends on that company's capital and
the face value of the shares. The total authorized capital divided by the number of shares, the
price per share is called the face value.

How much a shareholder owns the company is determined by the number of shares in that
company. An investor also gets his dividends based on the number of shares. A certificate is
issued to the investor concerned for the shares. This is called a share certificate. A share
certificate is a written document signed by a company that is a legal proof of ownership of the
number of shares indicated. Share certificate described in section 158 of the Companies Act
1994. According to this section, the share certificate must be prepared within three months of
registration of share distribution or share transfer. Violation of this provision is punishable by a
fine of 500 Tk per day.

Key information on a share certificate includes:

 Certificate number

 Company name and registration number

 Shareholder name and address

 Number of shares owned

 Class of shares

 Issue date of shares

 Amount paid (or treated as paid) on the shares

Benefits of share certificate:

1. Declares the person in whose name the share certificate names the certificate is issued
and to whom it is issued as shareholders of the company.
2. If the share certificate states that the share price has been fully paid, the company will
no longer be able to claim the shareholder as unpaid.