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Question
Share certificate and Share Warrant.
Solution
| Share certificate | Share Warrant | |
| 1 |
Meaning A share certificate is the registered document of title to the shares, issued by the company under its common seal |
A share warrant is a document issued under a common seal of a public company stating that the bearer of instrument has the title of the shares mentioned there in. |
| 2 |
Who issue the document? It is issued by public as well as private company. |
Only Public limited companies can issue Share warrants. |
| 3 |
Nature of Shares as regards paid up value? A share certificate can be issued for fully paid as well as partly paid shares |
It is issued only in case of fully paid shares |
| 4 |
Time of Issue A company initially (at first) has to issue share certificate |
After collection of the amount if the shareholder wishes, company can issue share warrant against the share certificate |
| 5 |
Sanction of government Central Government’s sanction is not required to issue share certificate. |
After collection of the amount if the shareholder wishes, company can issue share warrant against the share certificate. |
| 6 |
Provision in the Articles Provision to issue share certificate is not necessary in Articles. |
Articles must provide for issue of share warrant. |
| 7 |
Stamp Duty The stamp duty on issuing share certificate is nominal |
Heavy stamp duty is to be paid on the issue of share warrant. |
| 8 |
Negotiability Share Certificate is not a negotiable (transferable) document. |
Share Warrant is a negotiable document. Anyone holding the instrument can get the ownership of shares |
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