Letter of Undertaking for Issue of Duplicate Dividend Warrant

When a shareholder applies to the company for issue of duplicate dividend warrant as he has lost/misplaced the original dividend warrant or if it's stolen, then the company may ask some documents from him in support of this viz. police FIR copy, affidavit / indemnity bond, undertaking letter, photocopy of original warrant, identity and address proof of shareholder, etc.

In a letter of undertaking, the shareholder undertakes to pay the company in future all expenses or losses suffered by the company or make good the claims in connection with the duplicate dividend warrant issued to him.

For example: (1) Suppose someone else finds and encashes the original dividend warrant, then the company suffers loss for the same transaction. (2) Suppose the shareholder is lying about losing the original dividend warrant and encashes it later on. In all these cases, the company upon knowing about this will ask the shareholder to pay back the additional amount paid to him.

Following format of letter of undertaking could be useful. The letter can be addressed to either the Board of Directors or Company Secretary or Secretarial Department of the Company. Please contact the company and clarify the procedure before going ahead.

FORMAT

(Letter of Undertaking)

From:

(Name of the Shareholder)

(Address, Phone no.)

To:

The Company Secretary / The Board of Directors

(Name of the Company)

(Address, Phone no.)

Sub.: Issue of Duplicate Dividend Warrant

Ref: Folio no. / DP Id. ........................

Dear Sir/Madam,

I/We, (name of the shareholder(s)), residing at (address), am/are currently a shareholder of your esteemed company. My shareholding details are as follows:-

(1) Folio No. ........ / DP id. .......... and Client id. .............
(2) No. of shares: ......
(3) Face value: ..... each
(4) Distinctive nos.: from ... to ...
(5) Type of shares: .............

I/We understand dividend warrants were issued to me for the Financial Year 20..-.. with respect to the above mentioned shares. But unfortunately, I have not received the same yet / the said dividend warrants have been misplaced/lost somewhere during transit. Hence, I/We have not been able to encash the said dividend warrants.


Therefore, I hereby kindly request you to issue duplicate dividend warrants to me for the said financial year 20..-.. for my shareholding. In consideration of the company accepting my request and issuing the said duplicate dividend warrants in lieu of the lost/misplaced original dividend warrants, I/we shall indemnify the company for claim which may be made by any other person holding the original dividend warrant or claiming the payment due thereunder and towards all losses and expenses incurred by the company in consequence of such duplicate dividend warrant being issued to me/us.

Further, I/We undertake to have the said original Dividend Warrants delivered to the Company at our costs if the same is found or received by me/us at any time in future.

Kind request to do the needful at the earliest.

Thanking you!

Yours faithfully,

signature

(Name of the Shareholder)

Witnesses:

  signature                              signature
(Name of the Witness)         (Name of the Witness)
(Address of the Witness)     (Address of the Witness)

Date: .....................

Place: ....................