Share warrant?

A share warrant is a bearer document of title to shares and can be issued only by public limited companies and that to against fully paid up shares only.



A share warrant cannot be issued by a private company, because the share warrant states that its bearer is entitled to a number of shares mentioned there in. It is a negotiable document and is easily transferable by mere delivery to another person. The holder of the share warrant is entitled to receive dividend as decided by the company.



A share warrant is accompanied by attached coupons for the payment of future dividends.

Different between Equity share Capital and Share Warrants can be dealt as follows:

1. A share warrant can be issued only when the shares are fully paid up whereas a share certificate can be issued at any stage without the shares being fully paid up.

2. A share warrant is a negotiable instrument but a share certificate is not.

3. A share certificate is a document showing prima facie title to the shares represented thereby but a share warrant is the share security itself capable of easy transfer.

4. A holder of a share certificate is a member of the company but the holder of a share warrant is not, unless the articles otherwise provide.

5. A share certificate can be issued both by a public and a private company but a share warrant is issued only by a public company.