What is the difference between share certificate and share warrant ?

The following are the differences between a share certificate and a share warrant:

1. Both public as well as private companies can issue a share certificate whereas a share warrant can be issued by public limited companies only.

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2. A share certificate can be issued originally and even with respect to partly paid up shares whereas a share warrant cannot be issued originally and only share certificates for fully paid shares can be converted into them.


3. Authority of articles and approval of Central Government is necessary for issuing share warrants whereas there is no such restric­tion for the issue of share certificates.

4. The name and address etc. of a share certificate holder are to he entered in the Register of Members whereas no such details of a bearer of share warrant are so entered.

5. A transfer of share certificate requires registration of transfer with the company whereas the transfer of a share warrant is complete merely by delivery.

6. A share certificate is a prima facie evidence of title whereas a share warrant is a conclusive evidence of title if the transferee is a bona fide holder for value.


7. The holder of a share certificate has all the normal rights of membership whereas the holder of a share warrant may or may not be given the full rights of membership by the Articles.

8. The shares evidenced by a share certificate can be included in the qualification shares of a director whereas the shares evidenced by a share warrant cannot be so included.

9. The dividend is paid through dividend warrant posted by the company at the registered address of the member in the case of a share certificate whereas in the case of a share warrant the dividend is paid through bearer dividend coupons.

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