A photograph of a certificate is not enough to prove a transferable interest. Verification should reconcile the document with the registered owner, issuing corporation or club records, share class, authority to sell and current transfer requirements.
Inspect the document—but do not stop there
Record the issuer, certificate number, registered name, share class, number of shares, issue date, signatures and any endorsement area. Look for alterations or information that does not match the seller’s identity. Do not publish the full certificate or signature images.
Confirm the registered owner and authority
An individual should match the club and corporate record. A company seller should produce the internal authority and signatory documents required for the transfer. Representatives, estates and lost certificates require additional evidence.
Confirm the exact class and rights
Ask the club to identify the class, whether it is currently transferable, which membership privileges it can support and which buyer or nominee qualifications apply. Never infer rights solely from a certificate title.
Check clearance and restrictions
- Outstanding dues or assessments
- Pledges, annotations, disputes or transfer holds
- Pending replacement for a lost certificate
- Required surrender of cards or privileges
- Club preconditions and approval requirements
Reconcile tax and acquisition records
The current BIR checklist for an onerous transfer of unlisted shares calls for the stock certificate or subscription record, proof of acquisition cost, a notarized transfer document and valuation support, among other items. A qualified adviser should determine how those requirements apply to the specific transaction.
Verify through official channels
Use contact details independently obtained from the club or issuing corporation, not only details supplied by a seller. Confirm payment instructions separately. Keep a dated verification log showing what was checked, by whom and against which source.
Sources and methodology
We use official club, government and primary documents where available. Requirements can change; verify the current version directly with the issuing organisation.
Educational information only. Verify current club requirements and obtain appropriate professional advice for your circumstances.