What is a share certificate primarily evidence of?
Correct answer: A. The holder’s title to specified shares
- A. The holder’s title to specified shares
- B. The company’s solvency for all debts
- C. A guaranteed dividend payment
- D. A loan secured by company assets
Explanation
A share certificate is evidence of the shareholder’s title to the number and class of shares stated in it. It does not guarantee dividends or make the company’s debts the personal responsibility of the holder.
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About Company Law Basics
Company law covers incorporation, separate legal personality, limited liability, shares, the memorandum and articles of association, and the powers and duties of directors. It also includes shareholder meetings, resolutions, company records, audit, winding up and the differences between a registered company, partnership and sole proprietorship.
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