The Director intending to resign shall send notice in writing to the Company. The resignation of a director shall take effect from: The date on which the Notice Is Received by the company or. The Date, If Any, Specified by The Director in the notice, whichever is later
Procedure for resignation of director
Step 1- Notice of resignation by director
Step 2- Board will pass an resolution in a board meeting
Step 3- Company intimate ROC
Step 4- Director forward resignation letter to ROC
Step 5- If all the directors resigned, the promoter or CG may appoint required director
Why do we need this service?
A company or a corporate secretarial service is answerable for the shareholder administration and correspondence, corporate administration and statutory compliance. Without a company secretary, executives of the company must interpretation of this obligation. The company secretary is liable for diminishing the weight of company regulatory and corporate administration which generally falls on the executives of the company. For any recently settled association, it turns into a weight to deal with these regulatory assignments alongside the everyday exercises. Consequently company secretarial services assume a urgent job in smooth activities
of the business.
Share Certificate
What Is A Share Certificate?
A Share Certificate is a legal document issued by a company to the owner of the company’s shares certifying that the person named in the certificate is the actual owner of the shares. As per the Indian Companies Act, it is compulsory for every company to issue a share certificate to its shareholders after the company registration process is completed.
A share certificate is to be issued by a company mandatorily within two months from the date of company incorporation. Not following this requirement can attract significant penalties for the company from the MCA.
Required Details for A Share Certificate:
A share certificate must contain the following information:
1. Name of the company issuing the share certificate.
2. CIN, i.e. Corporate Identification Number of the company.
3. Address of the company’s registered office.
4. Name of the owner of shares.
5. Folio number of member.
6. The number of shares represented by such share certificate.
7. The amount paid for the shares.
8. The distinct number of the shares.
Procedure Followed To Issue Share Certificate:
The following process is followed to issue a share certificate by the company.
Step 1- Board Meeting A board meeting is called for to pass the resolution for allotment of shares to the applicants. After the board meeting, the letters for allotment of shares are sent to the members and these letters act as the temporary share certificates until the actual share certificates are issued by the company.
Step 2- Register Of Members The Register of members is prepared from the lists of application received and allotment sheets. This Register provides the details of the shareholders and shares allotted to them. A company secretary prepares this Register for the company.
Step 3- Drafting Of Share Certificates The share certificate is prepared in the prescribed format and signed by two directors of the company as well as the Company Secretary. The share certificate is also attested with the company’s seal and revenue stamp. Once the certificates are drafted
and prepared, another board meeting is called for to pass the final resolution for issuing share certificates to the shareholders.
The shareholders can then surrender their allotment letters and get their share certificates from the company either personally or through a registered post.
Step 4- Penalty For Not Issuing Share Certificate If a company fails to comply with the requirements to issue a share certificate to its
shareholders, the company can face a penalty of not less than INR 25,000, which could extend to INR 5,00,000. Along with this, every defaulting officer of the company would be punishable with a fine of not less than INR 10,000, which could extend to INR 1,00,000.
Why do we need this service?
A company or a corporate secretarial service is answerable for the shareholder administration and correspondence, corporate administration and statutory compliance. Without a company secretary, executives of the company must interpretation of this obligation. The company secretary is liable for diminishing the weight of company regulatory and corporate administration which generally falls on the executives of the company. For any recently settled association, it turns into a weight to deal with these regulatory assignments alongside the everyday exercises. Consequently company secretarial services assume a urgent job in smooth activities
of the business.