How to create a share certificate
Share certificates are one of the most important documents for any company issuing or transferring shares. They serve as official proof of ownership and help maintain a clear record of shareholder equity. This article breaks down the legal requirements, shows you what a compliant share certificate looks like, and walks you through a real example with screenshots.
Estimated Reading Time: 1 minute 30 seconds
A share certificate is a formal document issued by a company to its shareholders, confirming their ownership of a specific number and class of shares. It serves as legal proof of shareholding and is often required for due diligence, financing, or when transferring shares.
The key legal requirements regarding share registers under the Companies Act, 71 of 2008 include:
Section 24(3)(c): A company must maintain a share register containing the names, addresses, and details of shareholders, along with the number and class of shares held by each shareholder.
Section 33(3): The company must allow proper access to the share register to ensure transparency and allow stakeholders to verify shareholder information.
Section 50(3): Certificates must be signed by two authorised representatives within the company. This can be the directors or director and a manager. Both individuals must be
Section 51(1): When shares are issued, the company must enter the details into its securities register and issue a share certificate within 20 business days.
Section 56: Share transfers must be recorded in the share register, with the transfer reflecting the updated ownership information.
Section 57: Shareholders are entitled to receive share certificates for their holdings, and their details must be accurately recorded in the share register.
Additional compliance might apply based on the company's size, structure, or specific regulations, but these are the core legal sections related to share registers and share certificates.
Step 1: Collect all the necessary details, including ID numbers, full names, addresses, and the share history.
Step 2: Design the certificate with a professional layout, ensuring it meets all legal requirements, such as including company registration details, share class, and signatures from relevant signatories.
Step 3: Issue the certificate promptly, ensuring it is signed and dated correctly. Store a copy securely in both digital and physical formats. Integrate the certificate details into your share register for complete transparency and easy tracking for future audits or shareholder queries.
Step 4: Regularly review and update records to ensure that all certificates reflect the most current shareholder information, especially after transfers or allotments.
Jane Doe, director and founder of The InfoDocs Demo Company, initially held 100% of the company’s ordinary shares. To bring in a partner and support the company’s growth, she transferred 50% of the issued shares to John Smith on 6 April 2025, issuing share certificate #2 in his name and generating a balance certificate (#3) for her remaining 50%.
To reflect the new share transfer, Jane updated her share register to document the change and include John Smith as a shareholder. The following examples can be used as a guide when creating or reviewing your own share register.
This certificate was canceled when the transfer took place, as Jane’s 100% ownership was divided between her and John.
Issued to John Smith, reflecting his 50% ownership of the company.
A balance certificate was generated for Jane, reflecting her remaining 50% ownership in the company.
With InfoDocs, generating a compliant share certificate takes just a few clicks. The platform auto-fills shareholder details, assigns unique certificate numbers, and maintains a register of all issued certificates, making it easy to stay compliant and organised.
Get started with InfoDocs today.
Estimated Reading Time: 1 minute 30 seconds
What is a Share Certificate?
A share certificate is a formal document issued by a company to its shareholders, confirming their ownership of a specific number and class of shares. It serves as legal proof of shareholding and is often required for due diligence, financing, or when transferring shares.
Legal Requirements
The key legal requirements regarding share registers under the Companies Act, 71 of 2008 include:
Section 24(3)(c): A company must maintain a share register containing the names, addresses, and details of shareholders, along with the number and class of shares held by each shareholder.
Section 33(3): The company must allow proper access to the share register to ensure transparency and allow stakeholders to verify shareholder information.
Section 50(3): Certificates must be signed by two authorised representatives within the company. This can be the directors or director and a manager. Both individuals must be
Section 51(1): When shares are issued, the company must enter the details into its securities register and issue a share certificate within 20 business days.
Section 56: Share transfers must be recorded in the share register, with the transfer reflecting the updated ownership information.
Section 57: Shareholders are entitled to receive share certificates for their holdings, and their details must be accurately recorded in the share register.
Additional compliance might apply based on the company's size, structure, or specific regulations, but these are the core legal sections related to share registers and share certificates.
Tips for Creating Share Certificates
Step 1: Collect all the necessary details, including ID numbers, full names, addresses, and the share history.
Step 2: Design the certificate with a professional layout, ensuring it meets all legal requirements, such as including company registration details, share class, and signatures from relevant signatories.
Step 3: Issue the certificate promptly, ensuring it is signed and dated correctly. Store a copy securely in both digital and physical formats. Integrate the certificate details into your share register for complete transparency and easy tracking for future audits or shareholder queries.
Step 4: Regularly review and update records to ensure that all certificates reflect the most current shareholder information, especially after transfers or allotments.
Practical Example: The InfoDocs Demo Company’s Share Register
Jane Doe, director and founder of The InfoDocs Demo Company, initially held 100% of the company’s ordinary shares. To bring in a partner and support the company’s growth, she transferred 50% of the issued shares to John Smith on 6 April 2025, issuing share certificate #2 in his name and generating a balance certificate (#3) for her remaining 50%.
To reflect the new share transfer, Jane updated her share register to document the change and include John Smith as a shareholder. The following examples can be used as a guide when creating or reviewing your own share register.
Share Certificate #1:
This certificate was canceled when the transfer took place, as Jane’s 100% ownership was divided between her and John.
Share Certificate #2:
Issued to John Smith, reflecting his 50% ownership of the company.
Share Certificate #3:
A balance certificate was generated for Jane, reflecting her remaining 50% ownership in the company.
How InfoDocs helps
With InfoDocs, generating a compliant share certificate takes just a few clicks. The platform auto-fills shareholder details, assigns unique certificate numbers, and maintains a register of all issued certificates, making it easy to stay compliant and organised.
Get started with InfoDocs today.
Updated on: 24/04/2025
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