Vijay is holding 10,000 shares of Kamal Ltd., a listed company, in physical form. The price quoted for the share in stock exchange is ₹1,100. Due to change of house, Vijay could not locate the shares. He wrote to the Com
CS Professional · Drafting, Appearances and Pleadings · PYQS · June 2016
Vijay is holding 10,000 shares of Kamal Ltd., a listed company, in physical form. The price quoted for the share in stock exchange is ₹1,100. Due to change of house, Vijay could not locate the shares. He wrote to the Company Secretary of Kamal Ltd. for issue of duplicate share certificate. The company asked the following documents from Vijay to consider the request for issue of duplicate share certificate: (a) A copy of FIR; (b) An affidavit on a stamp paper of ₹10; (c) An indemnity bond on a stamp paper of ₹300 to be executed by the shareholder to the effect that in case the company suffers any loss due to issue of duplicate share certificate, the shareholder will indemnify the company to make the loss good; and (d) Since the value is large, a surety bond from a person other than the relative of the shareholder to make the loss good in case of any eventuality. Draft a surety bond on the basis of facts given above. You may imagine the facts/data wherever necessary.
Answer & Explanation:
Surety Bond This surety bond made this ........ day of ........ by Sri.......... Son of.......... resident of ........ (hereinafter called the surety) on one part and Shri Vijay, Son of............ resident of ........ (hereinafter called the principal). Whereas the principal has lost the physical shares certificate of Kamal Ltd, representing 10,000 shares at his house. The same was lost due to change of house. The details are mentioned below: Type of Security Folio No. No. of shares held Certificate no. Distinctive No. Equity E0213456 10,000 123154 10000-19999 The principle has therefore requested the company, Kamal Ltd. for issue of duplicate share certificates(s). The price quoted for the share in stock exchange is ₹1100/-. Since the value is large, a surety bond was requested by the company. Therefore in consideration of the company issuing duplicate shares, the surety hereby agree to Indemnify the Company against any claims, charges, costs, damages and loses which the said company, may sustain, incur or be liable in consequences or in relation to issuance of duplicate share certificate(s) at the request of principle. IN WITNESS WHEREOF, the parties hereto have hereunto set and subscribed their respective hands and seals the day, month and the year first above-written. Signed, sealed and delivered in the presence of 1. Surety 2. Principal
Topics: Drafting of Legal Documents
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