A share certificate is a legal document that serves as proof of ownership of company shares. The share certificate typically includes information such as the company details, name of the shareholder, the number of shares owned, and company signatures.
As a startup founder, you may be considering issuing shares in your company to raise capital or incentivize employees. When an investor buys shares in your company or when an employee decides to exercise their stock options, they will expect to receive a proof of ownership in your company. And when they do, you want a share certificate template handy and ready to go!
Share certificates are an important tool for companies to use when it comes to managing their shareholders. They serve as legal documents that confirm ownership of a certain number of shares in a company, and can be particularly beneficial to both employees and investors.
For employees, share certificates can serve as a milestone marker for a job well done. By issuing share certificates to employees who have exercised their options or purchased shares, companies provide them with tangible proof of ownership. This helps motivate them to work harder and take a greater interest in the company's success.
For investors, share certificates can provide a sense of security and trust. When investors purchase shares in a company, they are essentially investing in the company's future and trusting that it will be successful. By issuing share certificates to investors, companies provide them with tangible proof of ownership. This helps build confidence in the investment.
Additionally, share certificates can be used to help protect investors and ensure that their investment is secure. For example, if a company goes bankrupt or is sold, shareholders who hold share certificates will be among the first to receive compensation for their investment.
Overall, share certificates are an important tool for companies to use when it comes to managing their shareholders. They can help to build loyalty among employees, build trust among investors, and provide a sense of security and protection to all parties involved. As such, companies should take care to issue high-quality share certificates that contain all the necessary information and are designed in a professional and visually appealing way.
Cake issues Share Certificates as Holding Certificates rather than Individual Share Certificates. This means the share certificate will show the total holdings even if those holdings were acquired over multiple events. This helps to reduce problems in identifying multiple certificates for a total holding.
Cake's share certificate template includes the following:
With Cake, you can automate your share certificate and customize it with your company logo before sending it to shareholders.
If you lose your share certificate, you should contact the company to request a replacement. With the Cake platform, all share certificates are stored in one place, and comes with the ability to download PDF copies as needed.
Yes, many companies now issue share certificates electronically. This can be more efficient and cost-effective than issuing paper certificates.
A share certificate should include the name of the shareholder, the number of shares owned, and the class of shares. It may also include the date of issue and the name of the company.
Cake allows you to create legal contracts, send them for signing, and automate your contract management, all in one place.