if a share warrant issue against shares held in a compny then whether he will not remain as a member in co. or not ?
Yogesh Gupta (68 Points)
12 July 2018if a share warrant issue against shares held in a compny then whether he will not remain as a member in co. or not ?
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 12 July 2018
| Originally posted by : Yogesh Gupta | ||
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if a share warrant issue against shares held in a compny then whether he will not remain as a member in co. or not ? |  |
SHARE WARRANT IS EQUIVALENT TO SHARE CERTIFICATE
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 13 July 2018
A company’s Articles of Association can set any length of notice required for a General Meeting of its shareholders, but by Section 307 of the Companies Act 2006, notice must be at least 21 days for an AGM (for public companies only – private companies are not required to hold AGMs unless specified in the Articles of Association), or 14 days for other General Meetings - unless shareholders agree to a shorter notice period.
If a General Meeting is to be convened and held at shorter notice than the statutory period (or the period set out in the Articles) a consent form must be signed by shareholders holding at least 90% of the nominal value of shares giving a right to vote at such General Meeting (or a higher percentage specified in the company’s Articles, but not exceeding 95%) in the case of private companies. For public companies, the required percentage is 95% but short notice for AGMs can only be agreed unanimously.
CS M Pota
(Company Secreatary)
(3180 Points)
Replied 13 July 2018
Dear Ruchika Madam
What does it mean that Share warrant is equivalent to Share Certificate in relation to establishing right of Membership?
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 14 July 2018
To become member you need to hold Shares of a company against which company issues share certificate so share warrant is equivalent to share certificate it means if you are holding share warrant that indicates your membership in the company.
CAclubindia
