A bearer share certificate is a share certificate that does not bear the name of the holder. Whoever owns it is the owner.
A Registered Share Certificate has the name of the owner written on it. Not only that, the name and address of the holder is written in a Share Ledger kept at the headquarters of the Joint Stock Company. Transfer to another person is only effective upon registration in the Share Book.
The articles of association of a joint stock company shall specify whether the shares shall be bearer or registered shares, or how much of the shares shall be bearer shares and how much shall be registered shares. The articles of association shall provide that Registered Share Certificates may be issued without being registered in the Share Ledger.
transfer may be allowed.
If this is possible, the last holder of the Registered Share Certificate, whose name is on the Registered Share Certificate, signs the back of the Share Certificate in a way called “Open Endorsement”. After the Open Endorsement, such shares are traded in the Stock Exchange as bearer shares.
(As required by law, Banks and Insurance The shares of their companies are registered shares. Whereas these are traded on the Stock Exchange. This process is possible to give the backs of these stocks to the last holders They sign what is called an open endorsement).
