Although the world has gone digital and paperless, one area that paper documents remain to be of use is in the area of stocks trading. Many investors usually keep it in an organized file, but because they are seldom used, these physical documents are often misplaced or accidentally destroyed. But no matter if you cannot find your copy, not remembering where you kept your stock certificate or losing it altogether from natural calamities is not something to despair about. If you are unable to locate your stock certificates, you may use an Affidavit of Lost Stock Certificate to stand in its place. Read More
Misplacing or being unable to locate your stock certificates should not be a problem. If you cannot find the copy of your original stock certificates, you may use an Affidavit of Lost Stock Certificate instead. This legal document may be used in lieu of one or more original stock certificates to transfer ownership of the stocks or to sell / tender your stocks to the company. An Affidavit of Lost Stock Certificate is a legal form that can be used by a shareholder to declare that their stock certificate is lost, stolen, damaged, or destroyed, wish to get the stock certificate replaced, and agree to defend, indemnify, and hold harmless the company issuing a new certificate.
How To Write An Affidavit Of Lost Stock Certificate In Five Steps
With all the details that you have to remember, it may seem complicated to write an affidavit of lost stock certificates. But this should not deter you from creating one, Just follow these instructions on how you can successfully draft your affidavit of lost stock certificate. Make sure to read through our step-by-step process below.
Start with the title and introduction
By simply writing “Affidavit of Lost Stock Certificate”, it’s enough to determine what the affidavit is all about. Next step is to identify the affiant or the person who owns and lost the stock certificates. If you are the affiant, you must introduce yourself by writing down verifiable, biographical information about yourself. Include your full legal name, age, citizenship, and your current address. Also as a first step, remember to write a statement of truth that attests to the veracity of your statements contained in the affidavit.
Describe the lost stock as best you can
Here you’ll include all the details that you can remember of your stock certificate. Indicate the number of shares you own, its par value, the type of stock that the certificate represents, date of issuance, and the name and type of company that issued the stocks that you have.
Explain how the stocks certificates were lost, damaged, or accidentally destroyed.
This is your opportunity to explain the situation of the lost stock certificates. You need to write a detailed description of the events leading up to the realization that the stock certificates were lost as well as the steps you took to find them. If the certificates were destroyed, it is best to explain the circumstances of the event and if you did anything to retrieve or save the certificates. Be as detailed as possible and show that you have done everything you can to find or save the documents.
Review your affidavit and correct any errors
Once you’re done with the certificate, make a closing statement reaffirming the truthfulness of the facts mentioned in the affidavit. Correct any erroneous statements as any false information can result in criminal charges like perjury. Review your affidavit carefully before bringing it for notarization.
Bring your affidavit of lost stock certificate for signature and notarization
For your affidavit of lost stock certificate to be valid, you must take it to a notary or other government officials allowed to administer an oath. A list of notaries can be found in the phone book. You are required to personally go to a notary public as it is important that you sign the document in their presence of a notary public. They will need to witness you signing the affidavit to verify your identity and they will also check your ID so make sure that you bring with you a government-issued ID. Only after verifying your identity will they sign and notarize your document.
Are affidavits of lost stock documents only used for transfer or selling of shares?
Not necessarily. The Affidavit of Lost Stock Certificates can be used as a stand in for the lost certificates and can be used as proof of ownership of these shares. It verifies the loss of these documents and can also contain the details of how these lost certificates can be replaced.
Who should sign the affidavit of lost stock certificates?
Generally, it’s the affiant who signs the affidavit of lost stock certificates. If the missing certificates are also binding contracts, documents that require approval of the members of the board or corporation, or have multiple owners, the affidavit must be signed by all of the individuals who signed the original certificate.
Do I lose my stock shares if I lose my certificate?
No, that will not happen. If you are a shareholder, your shares will remain yours even without the certificate. The only way you will lose your shares is when you transfer ownership or sell it. Your stock certificate is only an evidence of your ownership of the shares and in the event that it’s lost, an affidavit of loss will verify the loss of the certificates and serve as proof for a replacement copy of the lost certificates.
Do not feel bad for losing your stock certificates, these are replaceable documents that you can request from the issuing entity. Just make sure that you have all the requirements like an affidavit of lost stock certificate to comply with what they need. Having this affidavit will serve as proof of loss and help you resolve this dilemma easily. However, for more complicated cases, consult with your lawyer for further information and assistance.