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.
- Time of issue: A share warrant can be issued on when the shares are fully paid up.
- Transfer: A share warrant can be transferred by mere delivery.
- Membership: The holder of the share warrant is not a member of the company unless the Articles otherwise provided.
- Which company can issue: A share certificate can be issued by the public and private company both.
- Approval of Central Government: A share warrant can be issued only if the Articles
- Petition: The holder of the share warrant cannot do so.
- Stamp duty: Stamp duty is payable on the transfer of shares in a share certificate.
- 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.
- Time of issue: A share certificate can be issued at any stage without the shares being fully paid up.
- Transfer: A share certificate cannot be transferred.
- Membership: The holder of the share certificate is a member of the Company.
- Which company can issue: A share warrant can be issued by a public company only.
- Approval of Central Government: The issue of share certificate does not require the approval of the Central Government.
- Petition: A petition on winding up can be presented by the holder of share certificate.
- Stamp duty: No stamp duty is payable.
- Coupons: A coupon for dividend may be attached to share warrant.