125. Loss or destruction of certificates

Question 1

125. Loss or destruction of certificates

Answer 1

General overview
[125.01] Section 125 provides for the company to issue a duplicate certificate or document of title to share or debentures, where the original certificate or document of title is lost or destroyed.

Question 2

Statutory declaration

Answer 2

[125.02] The owner of the shares shall make a statutory declaration to the effect that the certificate has been lost or destroyed, and not pledged, sold or otherwise disposed of, and undertake to return it to the company should the original be found subsequently: s 125(1)(a) and (b).

Question 3

Advertisement of loss/indemnity

Answer 3

[125.03] Section 125(2)(a) provides that where the value of the shares or debentures is greater than $500, the directors shall cause an advertisement in the newspapers indicating that the certificate or document of title has been lost and the owner’s intention to apply for a duplicate; and shall procure an indemnity from the owner indemnifying the company from any loss upon the production of the original certificate or document: s 125(2)(a) and (b).

Question 4

Listed securities

Answer 4

[125.04] The new subsections (4) and (5) introduced by Act No 36 of 2014 provide that subsection (2) shall not apply to any document of title that is registered under the Depository’s name or its nominee’s name.