Question

SHARE CERTIFICATE SHARE WARRANT

Answer 1

	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 the instrument has the title of the shares mentioned therein.
2	Who issues the document? It is issued by the public as well as private companies.	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 a share certificate.	After collection of the amount of the shareholder wishes, the company can issue a share warrant against the share certificate.
5	Sanction of government Central Government’s sanction is not required to issue a share certificate.	The Sanction of the Central government is required to issue a share warrant.
6	The provision in the Articles Provision to issue a share certificate is not necessary for Articles.	Articles must provide for the issue of the share warrant.
7	Stamp Duty The stamp duty on issuing a share certificate is nominal.	Heavy stamp duty is to be paid on the issue of the 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.