What is Indemnity for a Lost Share Certificate?

Share certificates can become misplaced, damaged, illegible, or destroyed. This is normal – but not a problem for shareholders or companies, as long as you have indemnity secured for share certificate(s).

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Why do companies require Lost Share Certificate Indemnity?

• Indemnity cover is sought in order to protect the company from any risk or potential losses arising if the original certificate is recovered/restored – and then used fraudulently. 

• The Indemnity is simply a ‘mini insurance policy’ safeguarding a company against any costs that they might incur as a result of issuing a duplicate / new share certificate.

• Indemnity protects against potentially fraudulent scenarios – for example, A shareholder falsely claims to have lost their certificate and is issued a “new” one. He then sells the “old” certificate to an innocent purchaser. This purchaser may sue the company if his certificate is proved worthless. Indemnity protects against such situations.

 

Countersignatures:

• Larger share management entities (including Computershare) will ask for a countersignature from a bank or insurance company for ALL lost share certificate indemnity forms for certificates over €50,000. 

• However, if the share certificate in question is under €50,000, they may waive the countersignature – but the shareholder is expected to pay an additional fee for this. 

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At Excess Surety Bonds, our indemnity forms for lost share certificates have been prepared and double-checked by our experienced team in order to ensure fast and easy delivery. Our indemnity forms come with easy-to-follow guidance notes and instructions for further steps.

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Contact us today for more information about lost share certificate indemnity, or to download one of our indemnity form packs

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