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what happens when stock certificates are lost this is not an uncommon situation for corporations particularly small corporations as they start to grow as they start to develop sometimes people go back and they go to look in the corporate files and theres no stock certificates there those stock certificates really should have went to the stockholders at some point and a lot of times even those stockholders do not have the original stock certificates now the issue from a risk management standpoint for the company and the board of directors that is managing that Corporation is that those stock certificates may have been transferred and the transfer may not be recorded on the books and records of the business so what this means is theres a risk to the corporation that we could have duplicate stock certificates lets say stockholder a sold their shares to their friend Mr X and Mr X then wants to register their shares later if the company comes back and reissues a new share certificate to
