12.7.1(ALLOTMENT OF SHARES)

Share Certificate (s.113). Once shares are allotted and the name of a person is entered in the Register of members, the company shall deliver certificate of its shares within three months after allotment and within two months after application for registration of transfer is made. The share certificate states the name, address, occupation of the holder together with the number of shares and their distinctive number and amount paid-up. It must bear the common seal of the company, must be stamped and bear the signature of one or more directors.

If default is made in complying with this provision, the company and every officer in default will be liable to a fine upto Rs 500 for every day of default.

Further, a notice may be served on the company by the person entitled to the certificate requiring it to make good the default. If the company fails to comply with this notice within ten days of the service thereof, the Court may, on the application of such person, order the company and any officer thereof to make good the default within a specified time and to pay costs of and incidental to the application.