Question

What are the Aims and Objectives of a Share Certificate?

Answer 1

A share certificate is a legal document that is issued to a shareholder to confirm ownership of a certain number of shares in a limited company from a specific date. Limited companies issues share certificates to their shareholders when they purchase shares after company formation.

Answer 2

The aims and objectives of the share certificate are:

a) The share-holders will be clear on what amount of shares they will be receiving from the company.  

b) The share-holders can equalize their shares in a correct proportion which helps them in investing on their own business.  

c) The share certificate includes a list of objectives that clearly mentions the importance of the shares and their necessity in the day to day marketing activities.  

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