Differences between Share Warrant and Share Certificate

Differences between Share Warrant and Share Certificate

Differences between Share Warrant and Share Certificate

A share warrant is a negotiable instrument but a share certificate is not. Both share certificate and share warrant are documents that deal with shares of a company.

Share warrant – A document which indicates that the bearer of the share warrant is entitled to the specified number of shares is share warrant.

  1. Time of issue: A share warrant can be issued on when the shares are fully paid up.
  2. Transfer: A share warrant can be transferred by mere delivery.
  3. Membership: The holder of the share warrant is not a member of the company unless the Articles otherwise provided.
  4. Which company can issue: A share certificate can be issued by the public and private company both.
  5. Approval of Central Government: A share warrant can be issued only if the Articles
  6. Petition: The holder of the share warrant cannot do so.
  7. Stamp duty: Stamp duty is payable on the transfer of shares in a share certificate.
  8. Coupons: No coupons of a dividend are attached to a share certificate.

Share certificate – A legal document that indicates the possession of the shareholder on the specified number of shares is known as share certificate.

  1. Time of issue: A share certificate can be issued at any stage without the shares being fully paid up.
  2. Transfer: A share certificate cannot be transferred.
  3. Membership: The holder of the share certificate is a member of the Company.
  4. Which company can issue: A share warrant can be issued by a public company only.
  5. Approval of Central Government: The issue of share certificate does not require the approval of the Central Government.
  6. Petition: A petition on winding up can be presented by the holder of share certificate.
  7. Stamp duty: No stamp duty is payable.
  8. Coupons: A coupon for dividend may be attached to share warrant.

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