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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.

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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.

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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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