Four Things Your Share Certificates Need to Include

You have successfully recruited shareholders for your business, and now you need to give them documentation of their stake in your company. How do you keep track of their shares and make sure everything is recorded properly? One thing you should do to make sure your business is on the same page with its shareholders is to procure and keep share certificates to properly document and distribute this information. In order to make sure your share certificates are accurate, there are four pieces of information they should include:

  • Number of Shares – This seems fairly simple, but it is important to note on the paperwork how many shares each shareholder actually holds. This is especially true if the shares are divided differently between shareholders so that you have an accurate number.
  • Class and Par Value of Share s – It is essential to indicate the class of shares and whether the shares have a par value or are without par value on each certificate, so shareholders understand the type of shares they own and the rights that attach to their shares.
  • Company Name – It will not do any good to give your shareholders a share certificate if it does not state your business name. Make sure to be specific and include the full legal name of your business.
  • Name of Shareholder – Share certificates are more than a document for the shareholder themselves; they are also documentation for you to keep in your corporation's minute book. Proper documentation of each shareholder’s name will ensure correct recordkeeping.

If you need more information on share certificates or would like to purchase these important supplies for your corporation, please contact us at New Business Now.com.

Articles on this blog are general in nature and are provided for informational purposes only. Use of this blog does not provide or replace individualized legal advice and does not create a solicitor-client relationship with our firm. Users who require advice on a particular matter should consult directly with Mr. Eric Cohen, Barrister & Solicitor, and Ontario lawyer or a competent lawyer in their Province or State.


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