A Share Certificate is a legal document that records a shareholder's investment, as shares, in a limited liability company. This share certificate template is suitable for use by private limited companies in the UK who issue paper share certificates.
A company's directors are responsible for issuing share certificates to anyone who becomes a shareholder after the company is formed (incorporated). There is no legal requirement to issue share certificates to the initial subscribers but it is common practice to do so.
A private limited liability is required, by law, to keep a record of issued shares and to whom they have been issued. Shareholdings when the company was incorporated will have been recorded in the IN01 statutory form (or the Memorandum of Association, depending on when the company was incorporated). A copy of share certificates issued after incorporation should be kept and members details added to the register of members.
In addition to receiving a share certificate and being added to the register of members, a new shareholder will also need to be added to the company's register of People with Significant Control (PCS) if they own more than 25% of the company's shares.
This Share Certificate is suitable for use with a limited liability company registered in England and Wales or Scotland and includes the following elements:
- company name
- location of registered office
- company registration number
- shareholder details
- shareholding details