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Voiding of share certificates

Voiding of share certificates

Voiding of share certificates means a certificate is made invalid, for example when replaced by a new one.

What is voiding of share certificates?

Voiding of share certificates (Swedish: makulering av aktiebrev), sometimes called destruction of share certificates, means that a share certificate is made invalid. This happens, for example, in an exchange of share certificates, when a new certificate replaces an older one. The old one must then be destroyed or voided, and the new one must state that it replaces it.

 

Voiding and the share ledger

Voiding should be reflected in the share ledger, so it is clear which certificates are valid. A lost certificate is instead handled through cancellation.

Learn more about the digital share ledger
Henrik Kristensen, NVR
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Related terms

Share certificate

A share certificate is written proof that a person owns certain shares in a limited company.

Exchange of share certificates

An exchange of share certificates means old certificates are replaced with new ones, often after changes.

Cancellation of a lost share certificate

Cancellation of a lost share certificate means it is declared void so that a new one can be issued.

Notation in the share ledger

A notation in the share ledger records a circumstance relating to a share or its owner.