Q.Justify the following statement.
A company can issue duplicate share certificate.

The statement is justified. A share certificate is only evidence of ownership, not the ownership itself, so its loss does not destroy the member's rights. The Companies Act, 2013 therefore allows a company to issue a duplicate share certificate on being satisfied that the original is lost, destroyed or damaged, after following the prescribed procedure.

A share certificate is a document issued under the common seal of the company certifying that the named person holds a stated number of shares. It is proof of title, but if it is lost, misplaced, stolen, defaced, torn or destroyed, the shareholder still remains the owner. To enable him to have valid documentary proof again, the company is permitted to issue a duplicate share certificate. This is justified because:

• Legal permission: The Companies Act, 2013 and the Companies (Share Capital and Debentures) Rules specifically allow issue of a duplicate certificate in place of one that is lost, destroyed, defaced, mutilated or torn.
• Protecting the shareholder's rights: Denying a duplicate would wrongly deprive a genuine owner of proof of his shareholding and of benefits like dividends, bonus and rights shares. …