A share certificate is evidence of title to the shares to which that certificate relates and should be issued by a UK company to a shareholder within two months of an allotment of shares. It sets out the name and address of the registered shareholder, the number and class of shares held and is executed by and on behalf of the company.
Where is certificate is lost or destroyed, it must be replaced before the shareholder to whom the certificate relates can transfer their shares. In the majority of cases, a company will expect a shareholder to give an indemnity for a lost share certificate before it will issue a replacement.
Shareholders may also hold uncertificated shares, where no physical share certificate is required, in CREST, a UK-based central securities depository. The title to any uncertificated shares may be transferred electronically through CREST if a company and the relevant shareholder(s) are registered on and eligible to utilise the system.
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