The Red Scepter Shard must be recovered from (Blackwing Lair) to form .
As a quest objective
This is part of the fork of quest chain:
Only one person will be able to loot the shard, even if multiple people have the quest. To clear things up, you have 5 hours to kill Nefarian and loot the shard, afterwards you can keep the shard in your bags/bank for as long as you like, as long as you got the shard, you can keep it for as long as you like and still hand it in successfully.
Patches and hotfixes
Patch 1.9.0 (03-Jan-2006): Added