Write notes on Contents of the share certificate.

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Q. Write notes on Contents of the share certificate.

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2023Subjective· 4mImportance★★★★★

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A share certificate is the legal proof of ownership of shares. It must clearly state the company's details, the holder's details, the number, class, distinctive numbers and value of the shares, and be properly signed and sealed.

A share certificate is a document issued by a company, under its common seal, certifying that the person named in it is the registered holder of a stated number of shares. It is prima facie evidence of the member's title to those shares and is issued within two months of allotment. To serve as valid proof, it must carry the following contents.

Contents of a share certificate:

Name of the company and the address of its registered office.
Certificate number, which is unique to each certificate.
Name of the holder (member) to whom the shares are allotted and the folio number in the register of members.
Class of shares (equity or preference) and the number of shares held.
Distinctive numbers of the shares covered by the certificate.
Nominal (face) value of each share and the amount paid-up per share.
Date of issue of the certificate. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2023Set ANNUAL1 markMCQ
$Q. Find the odd one.$
(a) Face value
(b) Market value
(c) Redemption value
›Reveal solutionSolution
The odd one out is Redemption value. Face value and market value both relate to equity shares, whereas redemption value relates to securities that are repayable, such as preference shares and debentures.

Face value is the nominal (par) value of a share as stated in the capital and printed on the certificate.

Market value is the price at which a share is actually bought and sold in the stock market. …
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CBSE 2020Set ANNUAL1 markMCQ
$Q. During the period of boom in the share market ______ are issued to raise capital.$
(a) bonds
(b) debentures
(c) equity shares
›Reveal solutionSolution

The correct option is equity shares. In a boom, high investor confidence lets a company raise ownership capital easily and cheaply.

A 'boom' is a period when the share market is rising, trading is active and investors are optimistic and willing to buy shares. In such conditions a company can sell its equity shares quickly, and usually at a premium, because demand is strong. This is the cheapest and most convenient time to raise ownership (permanent) capital that never has to be repaid and carries no fixed interest burden.

…

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CBSE 2020Set ANNUAL1 markMCQ
$Q. If a share of ₹ 100 is issued at ₹ 100, it is said to be issued at ______.$
(a) par
(b) discount
(c) premium
›Reveal solutionSolution

The correct option is par. Issue price equal to face value means the share is issued at par.

Every share has a face value (also called nominal or par value) printed on it, here ₹ 100. The way a share is issued is judged by comparing the price at which it is offered with this face value. When the issue price equals the face value, that is, a ₹ 100 share is sold for ₹ 100, the share is said to be issued 'at par'.

…

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Q.Write notes on Contents of the share certificate.

Concept understanding — Terms of Issue of Shares

Q.Write notes on Contents of the share certificate.

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