How to consolidate share certificates

When companies undergo share consolidation, it’s common to have share certificates recalled and new ones re-issued. Consolidating share certificates save costs when shares dematerialise and provides added convenience in the physical holding of shares, and in efficiently monitoring client shareholding.

With InfoDocs, a share certificate consolidation is an easy, process, but the transaction needs to adhere to four criteria:

  1. You can only consolidate shares from the same share class
  2. You can only consolidate shares transferred or allotted to the same shareholder
  3. All transfers and/or allotments that form part of the share consolidation need to happen on the same date
  4. Every transfer and/or allotment needs to go to the same certificate number in order for shares to be consolidated

Simply follow the easy steps below to complete this transaction:

Step 1: Go to the Shareholders Tab, and click on “Transfer Shares”. Select the shareholder whose certificates are to be consolidated as the “Transferred to” option.

Step 2: Next, select the same shareholder as the “Transferred From” option, and the first certificate that forms part of the consolidation as the “Shareholding” option.

Step 3: Fill in the date, how many shares are being transferred to the new certificate (usually all of them), the amount paid per share.

Step 4: Manually change the new certificate number. Remember that this new certificate number will be the same for the next transfer.

Step 5: Click Save. The new certificate that will contain the consolidated shares has now been created.

Step 6: Repeat Steps 1 and 2, making sure to select the remaining shareholding that needs to be transferred to the new certificate.

Step 7: Repeat step 3, making sure that the date is the same as the previous transfer.

Step 8: Manually set the certificate number to the same number as the first transaction. A warning will appear reminding you that this number has already been used. Ignore the warning, making sure you have the correct number, and click “Save”.

Go back to the Shareholders Tab, and under “Actions”, click on “Maintain Share Certificates”. The new, consolidated certificate should now be visible.

Leave a Reply
