What is the process for issuing corporate stock certificates?

In New Mexico, corporations are formed by filing articles of incorporation with the Secretary of State. Once the articles have been filed and approved, the corporation must issue corporate stock certificates to its shareholders. The issuing process begins with the board of directors approving the sale of the stock. The board then authorizes the issuance of the stock certificates and determines the shares of the corporation to be outstanding. The board must also determine the amount of money to be paid by the shareholder for each share. Next, the board must appoint the stock transfer agent. This agent maintains records of ownership of the stock and transfers ownership of stock from one person to another. The board must also stipulate the form of the stock certificates. The corporation must then have the stock certificates printed and stamped with the corporate seal. The board must sign the certificates on behalf of the corporation before they are issued. Once the certificates are ready, the board must deliver the certificates to the stock transfer agent who will assign them to the shareholders. The stock transfer agent will then record the issuance of the certificates in a book called a stock ledger and provide the shareholders with a receipt for the previously-issued certificates. Once the certificates are transferred, the shareholders become the legal owners of the corporation’s stock.

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What is the process for issuing corporate stock certificates?

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