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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.

Updated On 25 Aug 2023 10:23 AM GMT
Mayank Shekhar

Mayank Shekhar

Mayank is an alumnus of the prestigious Faculty of Law, Delhi University. Under his leadership, Legal Bites has been researching and developing resources through blogging, educational resources, competitions, and seminars.

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