Question
How do I issue share certificates (Form SH-1) and what is the time limit?
Answer
Bottom line: Share certificates are issued in Form SH-1 within 2 months of allotment, and 1 month for a transfer.
1. Time limits (Section 56)
To subscribers, within 2 months of incorporation; on allotment, within 2 months; on a registered transfer, within 1 month of receiving the instrument.
2. The form
SH-1 is the certificate itself, signed by two directors and bearing the common seal where used.
3. Penalty
Default can attract a company fine of â‚ą25,000 to â‚ą5,00,000.
Create one with our Share Certificate (SH-1) Generator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.