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