Are they legally shareholders?

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Fisho

Active Member
22 January 2018
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So it has come to my attention that a shareholder failed to sign their shareholder certificate. This certificate needed 2 signatures (com directors as shareholder is a com) and it's only just been picked up 19 months later when they are causing problems. Question is, are they actually shareholders? They also never paid for their shares (small amount).
 

Rod

Lawyer
LawTap Verified
27 May 2014
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A company signs the shareholder certificate, not the shareholder. A shareholder may need to sign a shareholder agreement but this is a totally different document.

A company may cancel shares at a general meeting if the shareholders have not met the terms under which the shares were issued.