| Commentary

167 Share certificate as evidence of title

| Commentary

(5) SHARE OWNERSHIP

A: PROOF OF OWNERSHIP

1: SHARE CERTIFICATES

167 Share certificate as evidence of title

A share certificate under the common seal of the company specifying any shares held by a member is prima facie evidence of his title to the shares1. The object of issuing a share certificate is therefore to enhance the value of the shares or stock by giving the registered holder evidence of a marketable title, and so enable him to dispose of the shares or stock with greater ease2.

Where a person has relied on a statement in a share certificate and altered

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