Legal Provision: As per Rule 6(2)(a) to (c) of the Companies (Share Capital and Debentures) Rules, 2014,
The duplicate share certificate shall be not issued in lieu of those that are lost or destroyed, without the prior consent of the Board and without payment of such fees as the Board thinks fit, not exceeding rupees fifty per certificate and on such reasonable terms, such as furnishing supporting evidence and indemnity and the payment of out-of-pocket expenses incurred by the company in investigating the evidence produced.
On Issue of Duplicate share certificate in case the share certificate is lost or misplaced:
Step 1: The shareholder should communicate immediately to the company that the share certificate is lost or is misplaced. Such communication shall either be in the form of a letter or by an email. The shareholder shall provide details of lost share certificate such as, name on the share certificate, share certificate number, number of shares, folio number etc. to the company.
Step 2: The shareholder is required to take the following steps :Lodge a complaint with the Police Station regarding misplaced or lost share certificate(s) specifying the details such as share certificate no(s), shareholder name, distinctive no(s) and no. of lost shares.
Prepare an Indemnity Bond on non-judicial stamp paper and affidavit on non-judicial stamp paper
Step 3: The shareholder shall submit following documents to the company:Request Letter duly signed by the shareholder ,Indemnity bond and affidavit along with copy (duly certified) of FIR filed with the police station for lost share certificate(s).
Step 4: Upon receipt of the request letter and other required documents, the Board shall take such necessary steps to verify the authenticity of documents and upon due confirmation, approve the matter by passing a board resolution.
Step 5: The fees required for issue of duplicate share certificate(s) shall be determined by the Board which shall not exceed Rs. 50 per certificate(as mentioned AOA of the Company).The company may also ask shareholder to pay out of pocket expenses incurred by the company while investigating the evidence produced by the shareholder.
Step 6: Post approval and payment of fees by the shareholder, the company shall issue a duplicate share certificate(s) to the shareholder within a period of three months from the date of submission of complete documents to the company.
Step 7: The share certificate(s) should have the following words on the face of the certificate
“Duplicate issued in lieu of share certificate number ___” The word “Duplicate” should be stamped or printed in bold letters on the face of the certificate.
Step 8: The details of the duplicate share certificate issued shall be entered in the Register of Renewed and Duplicate Share Certificate maintained in Form No. SH-2.