A share certificate in your name is evidence of your ownership of shares. However, with the development of electronic means of trading shares, most investors no longer use share certificates and rely instead on secure systems for exchanging data with the registrar and The Nigerian Stock Exchange (NSE) through the Central Securities Clearing System (CSCS).
This means that in theory you can deal much faster because there is no need to supply certificates as evidence of ownership, and for signature verification by the registrars.
If you lose your share certificate or it has been stolen, you should inform us immediately by phoning: 234-1-2716090-4, 8419257-8 or 234-1-2716097-8. You’ll need to tell us about any certificates you still hold so we can identify which share certificate is missing.
We’ll then make a note of the lost or stolen certificate and send you a letter of indemnity. In signing and returning this indemnity, you are confirming that if the lost share certificate subsequently comes to light, you will return it to us to be canceled. You are also required to guarantee that the company, in which you are a shareholder, will not be liable for any loss as a result of issuing the duplicate certificate.
In most cases, you’ll need to pay an administration fee before we can send you a new share certificate. At the moment, the charge is N1,000.00 (including VAT). This is because we have to do extra work to make sure that the process is as secure as possible.
To protect your company, the letter of indemnity must also be guaranteed by a bank or an insurance company listed on The Nigerian Stock Exchange. This is sometimes called ‘countersigning’ or ‘joining in’ an indemnity. Your bankers or insurers may offer this service but could charge you a fee.
If you have already completed a letter of indemnity and sent it back to us, the original certificate is now invalid. You must send it back to us to be canceled. If you have not yet returned it, please send the letter of indemnity back to us with a covering letter confirming that you have found the certificate and there is no need for a replacement to be issued.