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When stock certificates are lost, it poses a significant issue for corporations, especially small ones. Often, stockholders do not possess the original certificates, which should have been issued during their ownership. This situation creates risks for the company and its board of directors, as the transfer of shares might not have been recorded properly. Consequently, there is a potential for duplicate stock certificates. For instance, if a stockholder sold their shares to another person and that transfer was not documented, the new holder might later attempt to register the shares, leading to complications for the corporation. This situation necessitates careful management and risk assessment to avoid conflicts.