Share Certificate

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What is it?

A Share Certificate is a legal document provided by a company to each shareholder to certify ownership of a specified number of shares in that company.

The Share Certificate contains key information, including the name of the shareholder, the number of shares that they own, and the date on which the shares were allotted or transferred to the shareholder.

Why do you need it?

It is a legal requirement to provide shareholders with a Share Certificate as evidence of their shareholding. No transfer of those shares should be registered unless accompanied by the Share Certificate. This is to protect both the shareholders and the company.

Key clauses to watch for:

When drafting a Share Certificate, it is important to focus on a number of key clauses, in particular:

  • Company name and registration number;
  • Share certificate number;
  • Full name and address of the shareholder;
  • Number and type of shares issued to that shareholder; and
  • Amount paid (or treated as paid) on those shares.

Share Certificate Document

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