Shareholder Certificate 101: How do they work?

KEY TAKEAWAYS

• Shareholder certificates are essential documents that prove ownership in a corporation.
• Understanding when and how to use these certificates can prevent confusion and missed opportunities.
• They play a crucial role in business deals, helping investors make informed decisions confidently.
• You can use NotaryLive, an online notary service, or ComputerShare to optimize the process.

If you're an investor, business owner, or part of a corporation, this article is for you. It explains everything you need to know about shareholder certificates.

Learn when you need these certificates and how they prove ownership. You’ll also see how they help with business deals so you can make smart investment choices.

1. What Is A Shareholder Certificate?

A shareholder certificate (also called a stock or share certificate) is a legal document that proves you own part of a company.

It shows that you have invested in the company and hold an equity stake in it.

You can also use this certificate, with proper authentication, to transfer shares when needed.

What’s included in the shareholder certificate?

The shareholder certificate includes information such as:

• holder's name
• number of shares owned (investment record)
• the date of issuance
• company name
• certificate number
• authorized signatures

2. Issuing a Shareholder Certificate

Physical vs. Electronic Shareholder Certificates

Choosing between physical and electronic shareholder certificates involves weighing each option's benefits.

• Physical Certificates: Provide a real sense of security and have traditionally shown ownership, safely kept by shareholders.
• Electronic Certificates: Fit the digital age by offering convenience, easy access, and smooth transfer, saving time and resources.

Physical certificates give a reassuring record, while electronic ones make record-keeping and transactions easier.

The choice depends on shareholder preferences and the goals of the corporation.

Consider the benefits of both options.

3. Shareholder Certificates in Different Scenarios

Stock certificates are important documentation used in many ways in the business world.

You need these certificates for different shareholder activities.

• Transferring Ownership: You need these certificates to transfer ownership when shares pass on, such as through inheritance.
• Mergers and Acquisitions: They confirm who the shareholders are and prove the parties are legitimate.
• Reorganizations or Spin-offs: During reorganizations or spin-offs, shareholder certificates help the company distribute shares correctly. They also keep records clear and organized.
• Notarization: A remote notary public can notarize certificates and related documents, like stock transfer forms. This process confirms that each transaction is real and trustworthy.

4. When Notarization is Required

Shareholder certificates usually don't need notarization from a notary public, unless the corporation is doing something important like transferring ownership.

In these cases, other legal documents, like:

• stock transfer forms
• power of attorney, or
• affidavits of domicile

. . . might need a notary's seal/notary stamp to make sure everything is correct.

What is a stock transfer form?

Stock transfer forms are crucial for transferring share ownership and often require a notary public and a wet signature to verify identities, ensuring signatories are genuine.

What is a power of attorney document?

A power of attorney document lets someone else make decisions for you, and notarization ensures it's valid and reduces disputes.

What is an affidavit of domicile?

Affidavits of domicile confirm where a person legally lives and often support estate matters after someone passes away.

5. Using NotaryLive for Notarization

No longer do you need to search for a "notary near me" or "notary services near me" to find a local notary.

Where can I get something notarized, then?

You can use a remote online notary to notarize documents online now. Online remote notaries can notarize your document online; no in-person appointment required.

NotaryLive, a remote online notarization platform, allows you to notarize documents like shareholder certificates easily and securely online, eliminating travel and ensuring full legal compliance.

NotaryLive simplifies the process: 

• No Geographical Constraints
• Time Efficient
• 24/7/365 Availability
• Enhanced Security

NotaryLive works in 4 simple steps:

To get started, you can click the button below.

Notarize Now

Does NotaryLive sound like the right fit for you and your business? 

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For pricing info, click here to visit our Pricing page!

If you have any questions, contact our sales team, and we will be happy to help! 

About NotaryLive

NotaryLive is a leading provider of digital notarization and eSign solutions, dedicated to enhancing business efficiency through a secure, user-friendly platform that prioritizes understanding and meeting customer needs. By offering innovative tools for electronic signatures and remote online notarization, NotaryLive empowers professionals to manage documents and notarize documents online, anywhere, any time.

Frequently Asked Questions for Shareholder Certificate

• Who makes a share certificate?
  • The corporation’s board of directors or an authorized officer issues a share certificate.
• How do I get my share certificate?
  • To get your share certificate, contact the company's transfer agent or the corporate secretary, who can provide the necessary steps to issue the certificate for your shares.
• Do I need a lawyer to fill out an affidavit of domicile?
  • A lawyer can help you complete the affidavit correctly and ensure it’s legally valid.
• Is there a platform for shareholders?
  • For stock transfers, entities like ComputerShare are a good resource.
• How much does a notary cost?
  • For an individual session, it costs $25. For businesses seeking a higher volume of notarizations for legal documents, visit our Pricing Page.

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• Understanding The Medical Powers Of Attorney
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