The procedures regarding issue of a share warrant are as follows:-
(1) Written application: TO convert a share certificate into share warrant, a share holder has to submit a written application. Along with the application, he has to send the original share certificate. He has also to pay the necessary stamp duty and fees for conversion.
(2) Issue of Lodgement ticket: After receiving the application and the share certificate, the secretary issues a lodgement ticket. It is an official acknowledgment for the deposit of share certificate for conversion into share warrant.
(3) Scrutiny documents: The secretary will then check the documents submitted by the share holder to convert a share certificate into a share warrant. To do such checking, he has to refer the register of members.
(4) Board sanction: A meeting of the Board of Directors will be called. In this meeting, the secretary will place the application of conversion of share certificate into a share warrant for approval and consideration by the Board of Directors. The Board of Directors will pass a necessary resolution to issue a share warrant, where in the secretary will be authorized to take necessary steps to issue a share warrant.
(5) Preparation of share warrant and making entries in the Register of members: After the Board of Directors have passed a resolution to issue a share warrant, the secretary will cancel the share certificate and prepares a share warrant which is duly stamped, sealed and signed. Necessary details like the distinctive number of shares entered in the share warrant, the date of issue of the share warrant are entered in the Register of members.
(6) Intimation about the share warrant: Once the share warrant is ready, the secretary informs the concerned members to come and collect the share warrant against the lodgement ticket issued to him
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