8 Most Important Differences between Share Warrant and Share Certificate

8 Most Important Differences between Share Warrant and Share Certificate are listed below:

Share Warrant:

1. A bearer of share warrant is not entered in the Register of Members of the company.

2. A share warrant can easily be transferred by mere delivery.

3. It does not require time for transfer. Mere delivery entitles spot transaction.

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4. A share warrant is negotiable instrument.

5. Coupons for dividends may be attached with share warrant.

6. For holding a post of directorship, certain qualification of shares is essential. Share warrants cannot qualify him to become a. director.

7. A holder of share warrant has no right to vote, no right to sit in the meeting, etc.

8. Sections 114 & 115 explain about share warrant.

Share Certificate:

1. A bearer of share certificate is entered in the Register of Members of the company.

2. A share certificate requires certain procedures and stamp duty for the transfer.

3. It also consumes time for such transfer.

4. A share certificate is a kind of interest and ownership in the company. It is not a negotiable instrument.

5. No coupons shall be attached with share certificate. A separate dividend may be declared by company, if the profits accrued.

6. Share certificate held by a person can qualify him to become a director.

7. A shareholder has several rights, viz. right to vote, right to participate in the meetings, right to become a director, etc.

8. Section 84 and 113 explain about share certificate.