Question

Distinguish between :
Share certificate and Share warrant.

Answer 1

No.	Points	Share certificate	Share warrant
1.	Meaning	A share certificate is the registered document of title to the shares, issued by the company under its common seal.	A share warrant is a document issued under a common seal of a public company stating that the bearer if instrument has the title of the shares mentioned there in.
2.	Who issue the document?	It is issued by public as well as private company	Only Public Limited companies can issue share warrants.
3.	Nature of regards paid up value?	A share certificate can be issued for fully paid as well as partly paid shares	It is issued only in case of fully paid shares
4.	Time of issue	A company initially (at first) has to issue shares certificate.	After collection of the amount if the sherholder wishes, company can issue share warrant against the share certificates.
5.	Sanction of goverment	Central Government's sanction is not required to issue share certificate.	After collection of the amount if the shareholder wishes, company can issue warrant against the share
6.	Provision in the Articles	Provision to issue share certificate is not necessary in articles.	Articles must provide for issue of hare warrant.
7.	Stamp duty	The stamp duty on issuing share certificate is nominal	Heavy stamp duty is to be paid on the issue of share warrant.
8.	Negotiability	Share certificate is not a negotiable (transferable) documnet	Share warrant is a negotiable document. Anyone holding the instrument can get the ownership of shares.