What is a share certificate?

The share certificate basically acts as a receipt for the purchase and ownership of shares in the company. The document certifies registered ownership of shares from a particular date. In the U.K., the Companies Act 2006 directs that a company must issue a share certificate when any shares are allotted (issued).

When should a company issue a share certificate?

The document certifies registered ownership of shares from a particular date. In the U.K., the Companies Act 2006 directs that a company must issue a share certificate when any shares are allotted (issued). The company must issue a share certificate within two months of the issue or transfer of any shares.

What is a share certificate template?

In a share certificate template, usually, all signatures are printed. In rare cases, share certificates are physically signed by the directors. As discussed earlier, share certificates can be issued as a physical document (on paper) or in electronic form (digital). Each one has its own merits.