Question

Write the difference between Share Certificate and Share Warrant.

Answer 1

S.No.	Share Certificate	Share Warrant
1.	A share certificate is an instrument in writing for the legal proof of the ownership.	A share warrant is a negotiable instrument, issued against fully paid up shares.
2.	Every company must issue share certificate to its shareholders.	There is no compulsion of the issue of share warrants by the company.
3.	Normally, the holder of the share certificate is to be the member of the company.	Generally, the holder of the share warrant is not the member of the company.
4.	The share certificate is issued by the company within three months of the allotment of shares.	Shares warrant can be issued only when the shares are fully paid up.
5.	No need to authorized in the Articles of Association to issue share certificate.	The issue of a share warrant must be authorized in the Articles of Association of the company.