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Microlesson · 5-min read

Renewed and Duplicate Share Certificates

# Renewed & Duplicate Share Certificates

Section 46(2) read with Rule 6 of the Companies (Share Capital and Debentures) Rules, 2014

## A. Renewed Share Certificate

When issued? Where the originally issued share certificate has been defaced, mutilated or torn.

Procedure: A renewed certificate is issued in lieu of surrender of the original certificate to the company.

### Special rules

1. A company may replace all existing certificates by new certificates upon sub-division, consolidation, merger, demerger or reconstitution — without requiring old certificates to be surrendered (because they may not be physically available in the right denomination).

2. The renewed certificate must state: "Issued in lieu of share certificate No.... sub-divided / replaced / on consolidation".

3. Fee — as Board thinks fit, not exceeding ₹50 per certificate. No fee where issue is pursuant to a scheme of arrangement sanctioned by High Court, Central Government or Tribunal.

## B. Duplicate Share Certificate

When issued? Where the original certificate has been lost or destroyed.

Procedure: Issued only with the consent of the Board, based upon evidences (FIR, indemnity bond, etc.) produced by the applicant.

### Special rules

1. Fee — as Board thinks fit, not exceeding ₹50 per certificate.

2. The duplicate must prominently state: "Duplicate issued in lieu of share certificate No...." and the word "DUPLICATE" must be stamped or printed prominently on its face.

3. Timeline for issue:

  • Unlisted companies: within 3 months from the date of submission of complete documents.
  • Listed companies: within 15 days from the date of submission of complete documents.

## C. Register of Renewed and Duplicate Certificates (Form SH-2)

  • Particulars of every renewed/duplicate certificate to be entered in Form SH-2.
  • Maintained at the registered office or any other place where the Register of Members is kept.
  • Custody with the Company Secretary or such other person as may be authorised by the Board.
  • Entries must be authenticated by the CS or such authorised person.

## D. Maintenance of share certificate forms (Rule 7)

1. Blank forms must be printed only on Board authority, and must be consecutively machine-numbered.

2. Custody with the CS or such authorised person.

3. Books relating to share certificates must be preserved in good order for at least 30 years; in disputed cases — permanently.

4. Surrendered certificates must immediately be defaced by stamping/printing the word "CANCELLED" in bold letters, and may be destroyed after 3 years from surrender — under Board resolution and in presence of a Board-appointed person.

## E. Punishment for fraudulent duplicate certificate [Section 46(5)]

If a company issues a duplicate certificate with intent to defraud:

Liable PartyMinimum FineMaximum Fine
Company5 times the face value of shares involvedHigher of: 10 times face value of such shares OR ₹10 crores
Every officer in defaultLiable for action under Section 447 (fraud)

## Quick comparison: Renewed vs Duplicate

AspectRenewedDuplicate
TriggerDefaced/mutilated/tornLost/destroyed
Original required?Yes (surrender)No (lost)
Mark on certificate"Issued in lieu of...""DUPLICATE" stamped prominently
Board consentImpliedExpress consent required
FeeMax ₹50 (nil for court schemes)Max ₹50
TimelineListed: 15 days; Unlisted: 3 months

Worked example

### Example 1

Example 1 — Lost certificate

Mr. A, holding 100 shares of an unlisted company, lost his certificate. He filed an FIR and submitted indemnity. When must the duplicate be issued?

Answer: Within 3 months from the date of submission of complete documents (for unlisted). If it were a listed company — within 15 days.

### Example 2

Example 2 — Fraud penalty

ABC Ltd fraudulently issued a duplicate certificate for 1,000 shares of face value ₹10 each. Compute the punishment.

Answer: Face value involved = 1,000 × ₹10 = ₹10,000.

• Minimum fine = 5 × ₹10,000 = ₹50,000.

• Maximum fine = higher of (10 × ₹10,000 = ₹1,00,000) OR ₹10 crores = ₹10 crores.

• Every officer in default liable under Section 447.

### Example 3

Example 3 — Torn certificate

Mrs. B's certificate is torn. She surrenders it to the company along with an application. The company replaces it. What word/marking should the new certificate bear?

Answer: Since it is a renewed (not duplicate) certificate, it must state: "Issued in lieu of share certificate No.... sub-divided / replaced / on consolidation" — NOT marked as "DUPLICATE".

⚠️ Common exam mistakes

  • Confusing 'renewed' (defaced/torn — original surrendered) with 'duplicate' (lost/destroyed — original not available).
  • Marking renewed certificates as 'DUPLICATE' — only duplicates (lost/destroyed) bear this word.
  • Forgetting that the timeline differs: 15 days for listed, 3 months for unlisted.
  • Charging a fee on duplicate/renewed certificates issued under a court-approved scheme of arrangement — no fee can be charged in such cases.
  • Destroying surrendered certificates immediately — they must be retained at least 3 years after surrender, and the books for at least 30 years (permanently if disputed).
Bare-Act text Section 46(2) and 46(5); Rule 6 & 7 of Share Capital and Debenture Rules, 2014 · Companies Act, 2013 · click to expand
Section 46(2) — A duplicate certificate of shares may be issued, if such certificate—(a) is proved to have been lost or destroyed; or (b) has been defaced, mutilated or torn and is surrendered to the company. Section 46(5) — If a company with intent to defraud issues a duplicate certificate of shares, the company shall be punishable with fine which shall not be less than five times the face value of the shares involved in the issue of the duplicate certificate but which may extend to ten times the face value of such shares or rupees ten crores whichever is higher and every officer of the company who is in default shall be liable for action under section 447.
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