Sandip Goswami (Management Trainee) 05 April 2012
If one shareholder holding shares of 1,00,000 of Rs. 10/- each consisting of two certificates. let First certificate No. 1253 holding 60,000 shares and Second certificate No. 1254 holding 40,000 shares. The shareholder wants only one certificate holding all the shares of 1,00,000. What procedures Company can follow after receiving application from the shareholder. I think it is not a consolidation as per Section 94(b) of the Companies Act 1956.
V. VASUDEVAN (LEGAL COUNSEL) 07 April 2012
It is a simple process. Both certificates are cancelled and instead one new share certificate is issued. It is called as consolidation of share certificate (not consolidation of shares). This process is provided in the Articles of Association of any Company and also under the listing agreement of the Stock Exchange, for listed companies. THe Company will carry out of this process either through a Board Meeting or a Commitee Meeting and the details will be recorded in the minutes and also the Register of Share Certiticates. New Certificate will carry the details of all the disstinctive numbers relating to the total shares.
vasudevan
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