Q. Distinguish between Share Certificate and Share Warrant. [2016 - 4 marks]
Distinguish between Share Certificate and Share Warrant.
1. Share certificate is a documentary evidence of possession of the shares. Share warrant is a document of title.
2. Share certificates are issued against partially paid up shares also. Share warrant is issued against fully paid up shares only.
3. It is compulsory to issue share certificates as soon as shares are allotted. Same is not true for share warrants.
4. Share warrants are only issued by the Public Limited companies.
1. Share certificate is a documentary evidence of possession of the shares. Share warrant is a document of title.
2. Share certificates are issued against partially paid up shares also. Share warrant is issued against fully paid up shares only.
3. It is compulsory to issue share certificates as soon as shares are allotted. Same is not true for share warrants.
4. Share warrants are only issued by the Public Limited companies.
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