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Home » Nigeria CAMA 2020 » Section 171 Companies and Allied Matters Act 2020

Section 171 Companies and Allied Matters Act 2020

Section 171 CAMA 2020

Section 171 Companies and Allied Matters Act is about Issue of share certificates. It is under Share Certificates of Chapter 8 of PART B (Incorporation of Companies and Incidental Matters) of the Act.

Issue of share certificates

(1) Every company shall, within two months after the allotment of any of its shares and within three months after the date on which a transfer of any such shares is lodged with the company, complete and have ready for delivery the certificates of all shares allotted or transferred, unless the conditions of issue of the shares otherwise provide.

(2) Every person whose name is entered as a member in the register of members is entitled, without payment, to receive within three months of allotment or lodgment of transfer or within such other period as the conditions of issue provide, one certificate for all his shares or several certificates each for one or more of his shares upon payment of a fee as the directors shall determine.

(3) Every certificate issued by a company shall be under the company’s seal (where the company has a common seal) or otherwise signed as a deed by the company and shall specify the shares to which it relates and the amount paid up on them :
Provided that in respect of shares held jointly by several persons, the company is not bound to issue more than one certificate, and delivery of a certificate for shares to one of several joint holders shall be sufficient delivery to all such holders.

(4) If a share certificate is defaced, lost or destroyed, it may be replaced on such term, as to evidence and indemnity and the payment of out-of-pocket expenses of the company of investigating evidence as the directors think fit.

See also  Section 227 Companies and Allied Matters Act (CAMA) 2020

(5) If any company on which a notice has been served requiring it to make good any default in complying with the provisions of subsection (1), fails to make good the default within 10 days after the service of the notice, the Court may, on the application of the person entitled to have the certificate delivered to him, make an order directing the company and any officer of the company to make good the default within such time as may be specified in the order, and the order may provide that all costs of and incidental to the application shall be borne by the company or by any officer of the company responsible for the default.

(6) If default is made in complying with this section, the company and each officer of the company is liable to such penalty as the Commission shall specify in the regulation for every day during which the default continues.

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