Lost Share Certificate

allthatmularky

A quick outline - an aged uncle of mine has lost a share certificate, the company has just been taken over, so I sent the acceptance of the offer back detailing a share certificate would follow. I wrote to Lloyds TSB Registrars detailing that a replacement share certificate was needed and requesting a letter of indemnity.

This process was all detailed in the offer document.

Lloyds TSB Registrars supplied the letter of indemnity - and say it will cost £28.20 for the admin or £50.20 for the admin and counter signatory of the indemnity.

The total proceeds of sale are £373 so this seems excessive in the extreme.

He has also lost a BT share certificate but BT will replace it for £15 - how come the inconsistency in the charge?

Any help much appreciated.

digerati

The cost of getting a replacement share certificate vary depending on the company (some older, larger companies subsidize the cost) and registrar. Some registrars will waive the fee on request. Ask them - they might do so.

Legally speaking a share certificate is NOT proof of ownership. Your name on the share register is all the proof you need of legal entitlement to a share in the company. (The reason the registrar needs a letter of indemnity is to prevent a shareholder from claiming to have lost a share certificate, then attempting to sell their shareholding twice.) With electronic settlement - this is almost impossible.

allthatmularky

Thanks for the reply - I have asked Lloyds TSB if they cannot waive some the fee for such a small amount - but its more than their jobs worth:rolleyes:

Just very annoying that they're going to profit by £40 or so.

Interested in your point that s share certificate is not proof of ownership - always thought this was a title deed? Could I prove that his name on the share register was sufficient to claim the cash without a share certificate?

catz1ct

No, you have to have a share certificate to accept the offer. If you don't have one you won't be able to receive your proceeds, end of story.

They have to charge for it because you wouldn't believe the number of people who loose their certs. They have to pay for someone to process it, the materials, admin involved, postal fees, etc. Remember it's a company not a public service.

If your gonna get the money back anyway I don't really see what the problem is. It's annoying but thats why these things should be kept very SAFE and you should know where it is.

dara231

I think it is a problem that registrars charge for this "service". Computershare sent me share certificates in the post (not recorded delivery). They never arrived. I now need to pay a £31 admin fee for the indemnity form to be processed. PLUS, I need to find a bank or insurance companny to countersign the form (and so far none of them are prepeared to do so) or pay Computershare a further £37.00 for this requirement to be waived! I find it difficult to understand why Computershare losing my share certificates should cost me £68! If this were any other kind of service, surely it would be the service provider that met the cost?

Has anyone else experienced this...or...better still...found a way around having to pay!

catz1ct

I thought you said your uncle lost them? The postal service lost them if you mean they were lost in transit. They don't have to send them by registered post. If they did that cost would be given back to the company which in turn the shareholders would pay for via dividends and the share price.

I'm afraid its just one of those things. It happens EVERY day, people should keep these things VERY VERY SAFE because this is what happens. Why should the company pick up the tab just because people loose their certs?

Trust me they wont waive the fee unless they are at fault.

I'd just pay the fee, get 'em sold and forget about it.

steve2001

As you are talking about lost or stolen certificates I wonder if you can tell me should my share certificate gets lost in the recent post strike (or stolen) is it possible although i have sent it as proof of ownership having just sold on line, could another person claim the shares with my certificate. I have had them several years.

barak

steve2001 wrote: »

As you are talking about lost or stolen certificates I wonder if you can tell me should my share certificate gets lost in the recent post strike (or stolen) is it possible although i have sent it as proof of ownership having just sold on line, could another person claim the shares with my certificate. I have had them several years.

No, because you will be on the shareholders' register, but you would have to pay to replace the certificate.

I now only ever send certificates by recorded delivery, which roughly compensates for the cost of a replacing them if 'lost'.