Section 172 Companies and Allied Matters Act 2020

Section 172 CAMA 2020

Section 172 Companies and Allied Matters Act is about Effect of share certificate. It is under Share Certificates of Chapter 8 of PART B (Incorporation of Companies and Incidental Matters) of the Act.

Effect of share certificate

(1) A certificate, under the common seal of the company (where the company has a common seal) or otherwise signed as a deed by the company, specifying any share held by any member, is a prima facie evidence of the title of the member to the shares.

(2) If any person changes his position to his detriment in good faith on the continued accuracy of the statements made in a certificate, the company shall be estopped from denying the continued accuracy of such statements and shall compensate the person for any loss suffered by him in reliance on them and which he would not have suffered had the statements been or continued to be accurate.

(3) Nothing in subsection (2) shall derogate from any right the company may have to be indemnified by any other person.

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Section 172 Companies and Allied Matters Act 2020

Section 172 CAMA 2020

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