What is a Share Certificate?
A share certificate is a legal document that stipulates the number of shares held by an individual or entity and provides key details about the shareholder’s rights and obligations. The document certifies registered ownership of shares from a particular date.
Singapore’s Companies Act governs the issuance and management of share certificates, with specific provisions outlined in Sections 93 to 98. Under these regulations, a company must issue share certificates within two months of its incorporation or within one month if there is a subsequent transfer of shares.
What Information Do Share Certificates Contain?
- Company Name
- Company’s Registration Number
- Company’s Registered Address
- Shareholder Details
- Number of Shares Issued and Share Class
- Shareholder Rights
- Date of Issue
- Unique Certificate Number
- Signature
- Transfer Restrictions
Types of Share Certificates
Share certificates in Singapore come in two forms:
- Physical share certificates
- Electronic share certificates
Types of Share Classes
There are generally two types of share classes:
- Ordinary shares
- Preference shares
Fully Paid vs Partially Paid-up Shares
Fully paid-up shares are what a shareholder has already fully paid for before the company issues the shares. The opposite refers to when the share value is only partly paid for and the unpaid portion remains because of the company.
How Do I Get a Share Certificate?
A company secretary is responsible for preparing share certificates in Singapore. Before that, the necessary documents, such as the company constitution and shareholder details must be provided.
Afterward, the company secretary fills out a share transfer form that outlines information such as the name of the shareholder, number of shares issued, and other key details.
After completing the forms, they must be submitted to the Accounting and Corporate Regulatory Authority (ACRA) within 14 days from issuance. ACRA will review the forms and issue an electronic copy of the share certificate.
After receiving the electronic copies, physical copies of the share certificates must be printed out for distribution to shareholders or to be kept on file for future reference.
When Are Share Certificates Issued?
Share certificates are usually issued on three occasions, during:
| Type of Situation | What it Involves |
|---|---|
| Allotment of Shares | A company typically issues new shares to new or existing shareholders to boost its share capital. |
| Transfer of Shares | A shareholder can transfer or sell their shares to an individual, corporation, or back to the company, either in whole or partially. |
| Loss of Share Certificate | If a shareholder loses a share certificate, they must inform the company by submitting a statutory declaration. The company secretary will provide a duplicate copy of the share certificate after preparing a board resolution to record the loss and cancel the previous certificate. |
Get Guidance on Your Company Share Certificates With InCorp
As a business owner, it is important to gain knowledge and understanding of a share certificate. As we have covered above, this document serves as evidence of your shares in the company and acts as a legal document for certain business transactions.
At InCorp, we understand the value and significance of this document for business owners and shareholders. Our corporate secretarial service provides strong guidance in this aspect and beyond. Get the help your business needs when you outsource to us today!
Conclusion
Share certificates play a crucial role in the corporate landscape of Singapore. Understanding the nuances of share certificates can offer investors and companies alike a competitive edge. With the guidance of InCorp, you can navigate the complexities of share certificates and ensure compliance with the relevant regulations.
FAQs about Share Certificates for Singapore Companies
- In Singapore, share certificates are not legally required but are commonly issued as proof of ownership of shares in a company. While the Companies Act does not mandate the issuance of share certificates, many companies still provide them to shareholders as a formal acknowledgment of their shareholding.
- Preparing and issuing a share certificate in Singapore involves several steps. Contact our corporate secretarial team to get started!
- In Singapore, a company is required to issue a share certificate to a shareholder within 60 days of the allotment or 30 days after the transfer of shares, as outlined in the Companies Act.
About the Author
Lee Wei Hsiung
Wei Hsiung is the Head of Corporate Secretarial Division of InCorp Global. He has more than 20 years of experience in the corporate secretarial profession. His extensive experience includes all aspects of corporate secretarial compliance, company registration, initial public offering (IPO), corporate restructuring and various corporate actions.
