You open an old envelope and find two certificates for the same company. One is blue, and one is red. Does one replace the other? Are they both valid?

In the world of paper shares, colour is code. Registrars use different colours to visually distinguish between different “issues” of shares to prevent fraud and administrative errors.

Common Colour Codes While every company is different, there are standard conventions used by registrars like Equiniti and Lloyds TSB Registrars in the 80s and 90s:

• Blue: Often indicates “Ordinary Shares” (the standard stock).
• Red/Pink: Often used for “Preference Shares” (which pay a fixed dividend) or “Deferred Shares.”
• Green: Sometimes used for “Bonus Issues” (free shares given to existing holders).

The “Replacement” Certificate If you lose a certificate and pay for a replacement (indemnity), the new certificate will often be a completely different colour from the original.

• Example: The original 1997 issue might be cream. The replacement issued in 2005 might be blue.
• Why: This helps the registrar instantly spot if someone tries to sell the “lost” (cancelled) certificate later.

How to Check Validity Do not trust the colour alone. Look at the “Certificate Number” in the corner.

• If you have two certificates for the same company, they are usually cumulative (you own both).
• Exception: If the company underwent a “Share Consolidation” (e.g., 10 old shares became 1 new share), the old certificates are worthless, regardless of their colour. You must check the “Issue Date” against the company history on Divica.