Share certificate is a legal document/certificate that is given by housing committees. It certifies that the resident is a legal owner of shares in the cooperative housing society. It is given free of cost to and is a mandate as per the by-laws of housing societies.
As per the by-laws, “Share Certificate, have a unique number that indicates the name of the member, the number of shares issued, and the value paid. It is to be issued by the society to every member for the shares. This is to be done within a period of six months of the allotment of the shares.”
During the society registration the registrar decides the value. This is done by dividing the total authorized capital with Rs. 50/share and based on that share certificates are distributed. For every 10 shares the member gets shares of Rs. 500.
Members of the managing committee of housing societies need to be careful while distributing the shares certificates. There are few guidelines to be considered and followed without fail. Some of them are listed as below
- The Share Certificate is to be collected by the member/owner of the flat himself in person.
- Society should have possession of the conveyance deed from the builder.
- Every share certificate needs to have the sign of chairman, secretary and one other member of the committee. It should also have seal of the society.
- Share certificates need to be authorized by the committee members before being issued.
- The name must be same as the one on original sale agreement.
- Resident needs to pay the society any loans and complete paperwork to clear any dues payable to the society.
- The society needs to take an indemnity bond, which should testify that the shares are not transferred to anyone else.
- The member should be present for the original sale agreement while taking the share certificate.
Not every resident is aware of the importance and utility of share certificates. It is important to do so. Clear all your doubts about share certificates by talking to other residents. This can be done easily with the help of chat systems integrated into ezeeServe. ezeeServe is a housing management application that helps societies be connected always. A powerful tool that helps in managing day to day activities as well as plan other