What is a Certificate of Stock?
Certificates of stock are documents that provide proof of ownership of a specified number of shares in a given corporation. Sometimes referred to as a stock certificate, a certificate of stock will include all pertinent information necessary to establish the legal claim of the holder of the document, including details about the number and type of shares held. In the bylaws of come corporations, holding a valid certificate of stock is necessary for the stockholder to have voice and vote in a stockholder’s meeting. It is important to note that owning shares in a company does not automatically mean that a certificate of stock will be issued. Depending on the legal documents used to establish the company, individuals who own a small number of shares may not be issued a certificate of stock as a matter of course. The actual document would be issued only to individuals and others who held a significant number of shares in the company. There are two different types of stock certificates in co
Certificates of stock are documents that provide proof of ownership of a specified number of shares in a given corporation. Sometimes referred to as a stock certificate, a certificate of stock will include all pertinent information necessary to establish the legal claim of the holder of the document, including details about the number and type of shares held. In the bylaws of come corporations, holding a valid certificate of stock is necessary for the stockholder to have voice and vote in a stockholder’s meeting. It is important to note that owning shares in a company does not automatically mean that a certificate of stock will be issued. Depending on the legal documents used to establish the company, individuals who own a small number of shares may not be issued a certificate of stock as a matter of course. The actual document would be issued only to individuals and others who held a significant number of shares in the company. There are two different types of stock certificates in
76. May a person become a stockholder without having a certifi- cate of stock? 77. May a person hold a certificate of stock and not be a stock- holder? 78. Must directors of a corporation be stockholders? 79. How, if at all, is the authority of the board of directors limited? 80. What are the principal duties of directors? 81. May a board of directors dispose of the entire assets of the corporation ? 82. May directors act for their own private interests in dealing with the corporation? 83. May a director ever contract with the corporation? 84. Define by-laws, rules, and regulations. 85. Distinguish by-laws and resolutions. 86. Define capitalization. COMMERCLA.L LAW 131 87. Distinguish capitalization from assets of a corporation. 88. Define capital stock. 89. May a corporation sell its shares for less than par? 90. Distinguish par value and face value of stock. 91. If a corporation sells a shareholder stock at 5% of its par value, and the corporation is solvent, who, if any one, may obj
