What is the deal with stock certificates?

When you put together a stock certificate for a limited liability company you will need to have stock certificate forms; then, you need a program to print it out. You will need the name of the company, the entrepreneur, the number of shares, the date of incorporation, and a legend on the back. The stock certificate is a certificate that you, as an entrepreneur own and is a proof that you own a certain number of shares. Although some people say that the stock certificate is not necessary in today’s internet exchange world, a lot of companies still issue them.

In order to fill out a blank stock certificate all you have to do is to meet a broker in your stock exchange market area. However, prepare for fraud broker. You will have to use the stock exchange law for protection, and you will also have to fill in information such as identity name, number of security issue, date and security number and signature on the certificate.

Owning such certificates allows you to inspect and copy, as long as you compile with the state regulations. But what happens if the shareholders decide to part ways? They key to inspecting and copying is to own at least 1 share of stock for this. If you already signed away all your stock, check your state's business corporation act, and perhaps offer to buy one single share for some price that will not be refused. Then you can request access to the corporate records.

A stock certificate is usually signed by 2 officers of the corporation, but the real transfer is done on the stock transfer books. This way nobody can forge a stock certificate. In certain states, two separate officers of the corporation are required to sign such a certificate, but usually other receipts are involved as well. If you signed over your stock to someone else, knowing what you were doing, then it is valid. If someone altered the document transferring the stock, after you signed it that is illegal. If you were issued a stock certificate, and it was #1, then your certificate should have been the one that you signed over.

If you are still a stockholder and hold enough voting shares, you can request a special shareholder meeting as per your state law and corporate bylaws. Usually only 10% of outstanding shares are needed to request a special shareholder meeting, but in some states it may well be higher.

There are cases when you do not see the problem from an entrepreneur’s point of view; for instance, if you are going through a non-amicable divorce, and your husband is the “bad guy” in the divorce and you can prove it. Ask for all of his stock as part of the settlement. This way it is moot, even if you signed over your shares unwittingly. This way it is no longer a corporate matter, but a divorce property issue. You might get it all. Discuss this with a really good divorce attorney; the court can even order an inspection of the corporate records. If you can't get all of the stock, ask for a controlling interest, so you can call a special shareholder's meeting and vote out the existing board of directors and vote yourself in. Then you can terminate the president, and appoint yourself back as president

Any Entrepreneur is looking for ways of securing their investment; the Stock Certificate is such a way. And although there are people that say that the end of the stock certificate is near, other entrepreneurs are still placing their bets on it.

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