Only listed companies come under CHESS and are not required to issue share certificates. All other companies are required to issue certificates within 2 months of allotment s1071H(1). Certificate is prima facie evidence of title s1070C(2). Mary should have been issued with a certificate.
(ii) A duplicate certificate must be issued by the company for the lost certificate under s1070D(3) if the requirements of s1070D(5) are met (namely a written undertaking as to its loss, that it has not been pledged, sold or disposed of, that a proper search has been conducted and that it will be returned if found). The applicant can also be asked to fund advertisements and give an indemnity bond to the company under s1076D(6). If the conditions are met the duplicate certificate should be provided within 21 days s1070D(4).
Share transfers
Share Transfers
Directors can only refuse transfer under s1072 F where:
Procedural error
Lien
Suspension period; or
Share only party paid
Resolution accepting or refusing and reasons for refusal
Dividends
Financial Assistance by a company to assist buying shares in the company
Financial assistance is allowed under the conditions set out in s260A(1) ie if it does not materially prejudice the company or its members or its ability to pay creditors or it is approved by shareholders under s260B or it is exempt under s 260C
It will also be necessary to comply with chapter 2E CA, if there is the provision of a financial benefit to a director: s 208(1) CA
Also note
Redemption of redeemable preference shares
A company can only redeem preference share if allowed under the terms of issue [s254A (2)] and if redemption is carried out in accordance with terms of issue: 254J (1)
254K: Other requirements about redemption
CAPITAL REDUCTION
The key provision is s256B
A company may reduce its share capital in a way that is not otherwise authorised by law if the reduction:
(a) is fair and reasonable to the company's shareholders as a whole; and
(b)
]]>