Differentiate between Share Warrant and Share Certificate.
Find the question and answer of Company Law only on Legal Bites.
Questions: Differentiate between Share Warrant and Share Certificate.Find the question and answer of Company Law only on Legal Bites. [Differentiate between Share Warrant and Share Certificate.]AnswerShare WarrantShare CertificateA Share Warrant is a document which is issued by a company under its common seal against fully paid-up shares which entitles the bearer to hold shares that are specified therein. A Share Certificate is a document which is issued by a company to the allottee...
Questions: Differentiate between Share Warrant and Share Certificate.
Find the question and answer of Company Law only on Legal Bites. [Differentiate between Share Warrant and Share Certificate.]
Answer
Share Warrant | Share Certificate |
A Share Warrant is a document which is issued by a company under its common seal against fully paid-up shares which entitles the bearer to hold shares that are specified therein. | A Share Certificate is a document which is issued by a company to the allottee or transferee of shares under its common seal which specifies the shares held by any person. |
It is only issued by a public limited company. | It is issued by the public as well as a private limited company. |
It is issued only against fully paid-up shares. | It can be issued against fully or partially paid-up shares. |
Issuance of share warrants must be authorised by the articles of the company. | Issuance of share certificate need not to be authorised by the articles of the company. |
Issuance of share warrant requires heavy stamp duty. | The stamp duty imposed on issuing share certificate is very nominal. |
It is a negotiable instrument and its ownership can be transferred by mere delivery. | It is not a negotiable instrument and its transfer can be effectuated through a transfer deed. |
Prior approval of the central government is required before the issuance of a share warrant. | Prior approval of the central government is not required before the issuance of the share certificate. |
The holder of a share warrant cannot apply to the National Company Law Tribunal for the winding up of a company. | The holder of a share certificate can apply to the National Company Law Tribunal for the winding up of a company. |
The bearer of the share warrant is not entered in the register of members of the company. | The bearer of the share certificate is entered in the register of members of the company. |
The bearer of the share warrant has no right to vote or attend meetings or be a director. | The bearer of the share certificate has the right to vote and participate in a meeting and be a director. |
Dividend coupons are attached with a share warrant. | Dividend coupons are not attached to the share certificate. |
Mayank Shekhar
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