What procedure will you follow, if you loose your Stock Certificate? How can you get the replacement for the same? These are the questions, which might intrigue a share holder and he must be aware of the processes that has to be followed for the replacements.
The basic modus operandi for the share holder, for his lost Stock Certificate will be submitting Affidavit of Lost Certificate, Declaration regarding lost Certificate, Indemnity regarding Lost Share certificate and Letter of Indemnity for the lost Share Certificate.
Indemnity by a shareholder is very much essential regarding lost Share certificate and corporation also requires the same for the issue of replacement of the lost share. This agreement also binds the shareholder to indemnify the corporation for any claims made for the loss of share certificate.
Again, by signing the Indemnity Letter, the shareholder is also confirm that, if the lost share certificate comes to light then, the shareholder is bound to return it to the corporation for cancellation. It is also guarantee from the shareholder that, the corporation will not be any way responsible for the loss arising due to issuing of duplicate certificate. The Letter of Indemnity offers such guarantee.
It is also necessary that letter of indemnity must also be guaranteed by insurance company for the protection of the corporation. Such gurantee procedure of insurance company is also known as, ‘countersigning or joining in’ an indemnity. The insurance company provides such services by charging nominal charges. The charges or fees are depended on the share certificate value, because higher the value of share certificates higher the risk for the insurer.
Below given Letter of Indemnity Regarding Lost Share Certificate Replacement will guide you, when you also seek for the replacement of your lost share from the company:
(To be executed on Non-judicial Stamp Paper of $________)
(Only for shares held in Physical form)
[Please put your signature on each and every page of the stamp paper and execute the same in the presence of a First Class Magistrate or a Notary Public]
[Corporation Name__________________
[Complete Address]__________________
Phone No.____________ Fax _________
Email _______________________
Dear Sir,
Re: Loss of Share Certificates held in Physical Form
I/We, the undersigned______________________________ beg to inform you that I/we have lost, mislaid or accidentally destroyed the original
Share Certificate No.(s)_____________ for_________ shares bearing Distinctive Nos.___________under Folio No.____________.
I/We further declare that I/we are the Registered Holder(s) of the said Shares and have not pledged or deposited by way of security the said original Share Certificate(s) nor I/we has/ have sold any of the aforesaid original shares certificate(s) and I/we undertake that I/we shall return the said original certificate(s) to the Company if and when found by me/us.
I/We have lodged Police Complaint on__________ with the_______( Name of the Police Station) for loss of the
aforesaid shares and Original/Certified copy of the same is sent herewith.
In consideration of the Company issuing at our request duplicate Share Certificate(s) for the aforesaid number of original shares held by deceased shareholder Mr./ Mrs./ Miss
______________, I/we hereby agree to indemnify the Company against all the proceedings, claims, demands, expenses, liabilities and damages, which may be made by or on behalf of any person holding the original share certificate(s).
I/We am/ are executing this Letter of Indemnity with the express understanding that for the purpose of enforcement of this Indemnity, the jurisdiction will be_________ County where the Registered Office of the Company is situated and not the place where this Indemnity has
been executed.
Dated this __________ day of _________, 200 _________ (Place) _______
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In the event of above mentioned Mr./ Mrs./ Miss_______________ failing to fulfill the aforesaid undertaking and indemnity, we stand sureties for him/ her/ them, for the use of fulfillment of the aforesaid undertaking and indemnity.
Surety- I Surety-II
Signature_______________ Signature ______________
Name_________________ Name _________________
Complete Address_______________ Complete Address_______________
_____________________________ _____________________________
Occupation______________________ Occupation______________________
Date_________________ Date_________________
Corporation Name__________________
Phone No._______________
Email:__________________
FORM TO BE SIGNED BY THE SURETY/GUARANTORS
PROPOSED FOR THE INDEMNITY AGREEMENT
1. Name in full:
2. Permanent Residential address:
3. Age:
4. a) Name & Complete Address of the Company in
which the Surety/Guarantor is employed:
b) Total Salary and other emoluments received during
the year
c) Identity No. as allotted by Income Tax Department:
5. Details of immovable property owned within
municipal limits:
a) Situation:
b) Value:
c) Annual realized:
[Please specify whether the immovable property consists of houses or mere lands]
6. a) Full name & address of the firm, where the business is carried on
b) Nature and value of the Business:
c) Annual turnover:
d) Annual Profits:
Date:_____________
[Signature of Surety / Guarantor]
N.B. : Please note that Surety/Guarantor should own property absolutely in his own name and not as a member of a Joint and undivided Hindu family, or own business absolutely in his own name and not as a partner.