Question

State the following statement is True of False:

A share warrant holder is the member of the company.

• A. True
• B. False

Answer 1

The correct option is B False

This Statements is False , due to the following reasons:

(i) A share warrant is a document that gives the holder, the right to buy share at a fixed price at a given future date.

(ii) A member is a person whose name appears in the Register of Members. He may not necessarily be shareholder or a share warrant holder of the company.

(iii) A share warrant is a documents title of share. A person holding share warrant becomes the owner of the shares mentioned in the documents.

(iv) A share warrant holder is a shareholder of the company. However he is not a member as name does not appear in the register of members.