Reduced director time
We will create a securities seal removing the hassle of signing certificates with directors or witnesses present.
Share Certificates and Company Seal Service
Share Certificates have been around since the beginning of the 17th century. For some shareholders they still offer the reassurance of a physical claim to their entitlement but for many companies they can be increasingly impractical for a number of reasons. Share certificates:
- Must be produced in hardcopy.
- Must be physically handed over to the shareholder within two months.
- Often get misplaced, which may lead to the need for an indemnity to be granted by the shareholder.
- Must be wet ink signed by 2 directors, a director and company secretary, or a director and a witnesses.
- Can start to differ to the official register of members over time.
The whole process can be overly administrative and most directors and shareholders often only realise if there is an issue when there is a dispute or when they are trying to sell shares and records are missing. Elemental offers a practical solution to help clients issue share certificates, when taken together with our Annual Compliance Service.
How we can help?
Legal requirements met
Certificates will be generated to match the registers and meet all compliance requirements
Responsibility to shareholders met
Professional Certificates that incorporate anti-fraud measures will be sent to shareholders within the required time
Records always maintained
Your company records will be kept and updated every time there is a change.
How it Works
1
Create Seal
We will create an official company seal.
2
Board Resolution
You will be asked to sign a document to authorise us to act on your behalf.
3
Issue Certificates
We will issue share certificates as per your instruction, seal them and post them.
4
Update Registers
We will update the company registers for you as part of our Annual Compliance Service.
Company Seals Explained
Traditionally, company seals were required for contracts, deeds and share certificates. In the UK, the practice has now evolved. Company Seals are no longer required but in recognition of the challenges posed by share certificates the law permits the use of a securities seal. A securities seal is facsimile of the seal of the company with the addition of the words “Securities Seal”.
Annual Compliance Service
Our company seal service works together with our Annual Compliance Service to ensure that your records are always up to date. Our annual compliance service also comes with many other benefits which take away the hassle of routine compliance. Find out more.
FAQs
- It takes time and administration to print, sign and send share certificates. Let Elemental do this for you by using a securities seal.
- Many companies do not produce share certificates or use digital certificates that are of questionable legal authenticity. Rest assured that you’re complying with the law and give your shareholders a physical representation of their share ownership by using Elemental’s share certificate and company seal service.
- A company that properly administers its share certificates is not only legally compliant; it appears more professional and well managed and can provide shareholders with a defence against their name being mistakenly or fraudulently removed form the register of members.
- Use of a securities seal is entirely proper and legal. The production of physical share certificates ensures compliance with the law and so reduces risk.
- Elemental will never act without the company’s authority or without obtaining the required documentation before issuing new certificates. You remain in control of the process at all times.
- The certificate paper itself also includes anti-fraud measures to provide shareholders with further protection.
- Yes, a company’s seal is a physical stamp that will be stored by Elemental.
- In accordance with the Companies Act we will use an official seal that is a facsimile of the company’s seal with the addition on its face of the word “Securities”
- No, our seal is different to a common seal of the company and it can only be used for issuing share certificates
Further information
Request a proposal
Get in touch with us today.
