Procedure to be followed for splitting of the share certificates

Procedure to be followed for splitting of the share certificates

1. Request for splitting of the share certificates should be accompanied by the original share certificates in lieu whereof the company will issue split share certificates.
2. Unlisted company may charge such fee, if any, not exceeding Rs. 2 per certificate issued on splitting of share certificates, as the Board thinks fit. [Rule 4(2)]
3. If company is listed no charges for splitting of share certificates shall be levied by the company.[Rule 8 of the Listing Agreement]
4. Hold a share transfer committee meeting of the Board of Directors and take the proposal of issuing split share certificates to that meeting for approval and also for affixing common seal on the new share certificates which are to be issued in lieu of the share certificates surrendered to the company.
5. Affix the common seal of the company on the new share certificates in the presence of two directors and the secretary of the company, if any, or some other person appointed by the Board for the purpose in accordance with Rule 6 of the Share Certificate Rules.
6. Share certificate shall state on the face of it and against the stub or counterfoil to the effect that it is " Issued in lieu of share certificate No . ........... Sub-divided."
7. Particulars of every share certificate issued shall be entered in a Register of Renewed and Duplicate Certificate indicating against the name(s) of the person(s) to whom the certificate is issued, the number and date of issue of the share certificate in lieu of which the new certificate is issued, and the necessary changes indicated in the Register of Members by suitable cross references in the "Remarks" column.
8. All entries made in the Register of Renewed and Duplicate Certificate shall be authenticated by the secretary or such other person as may be appointed by the Board for purposes of sealing and signing the share certificate. [Rule 7]