Discussion Between – Share Certificate and Share warrant

Easy way to learn and memorized – class 12th – S.P – Notes of source of business finance – Discussion – Share Certificate and Share warrant – HSC Board – Difference between  share certificate & Share warrant , Distinguish between Share Certificate & Share warrant –  sources of business finance – Secretarial Practice – Notes,  & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.

Sr.NoPointsShare CertificateShare Warrant
1.MeaningA share certificate is the registered document of title to the shares, issued by the company under its common seal.A share warrant is a bearer document share issued by the company under its common seal, duly stamped & signed by at least two directors of the company.
2.To whom issue the document?Both private as well as public companiesonly by public limited companies.
3.Time of IssueA company initially (at first) has to issue share certificate.It is issued only in case of fully paid shares.
4.ApprovalShare certificate doses not require the approval of the central government.share warrant requires prior approval of the central government.
5.Transfershare certificated is a registered document of the title to the share.share warrant is a bearer document it can be transferred.
6.Provision in the ArticlesProvision to issue share certificate is not necessary in Articles.Articles must provide for issue of share warrant.
7.Stamp DutyThe stamp duty on issuing share certificate is nominal.Heavy stamp duty is to be paid on the issue of share warrant.
8.NegotiabilityShare Certificate is not a negotiable (transferable) document.Share Warrant is a negotiable document. Anyone holding the instrument can get the ownership of shares.
9.Distribution of dividenddividend is paid through dividend warrant posted by the company at the registered address of the members.

Dividend is paid though dividend coupon.

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