SHARE CERTIFICATE AND SHARE WARRANT

4. Dividend coupon

5. In case of Private

Company

o. Stamp Duty

7. Rcstriction

8. Evidence

No dividend coupon is attached with a sharc certificate. Dividend is paid to the holder of a share certitieate by the issue of a dividend warrant in his favour.

A private as well as a public company can issue share certificate.

Stamp duty is payable on tmnster of shares.

There is no restriction on the issue of share certificate. Every shareholder will get at least one share certificate for

his holding in the company.

Share certiticate is a primalaeie evidence of title.

9. Qua Ii fi cat ion

IThe shares evidenced by the Shares. ccrtilieate are included in the Jualilieation shares of a director.

10. Name of the A share certificate asperities

Holder the name of the holder.119

Dividend coupon is attached with the share warrant. Dividend due on a share warrant is advertised in newspapers and is payable to the holder of the

share

warrant on presentation of such coupon.

A private comply cannot issue share warrant.

No stamp duty i payable on transfer of sharks.

A share warrant CIIl1 be issued subject to the conditions that Articles must

provide for the issue of warrant and the Central Government must approve the issue of warmth.

A share warrant is a conclusive evidence of the title if the transferee is a boated holder tor value.

Shares evidenced by a share warrant cannot be so included.

A share certificate docs not state the name of the holder. However, it specifics the number of shares held by the holder.

Every company-public or private is to maintain a Register of Members. Every person whose name is entered in the Register of Members is a member of

the company, whereas a person who holds shares of the company is a shareholder. Generally, these two terms-member and shareholder are used

interchangeably, but they differ in their legal terms. All shareholders are members and all members are shareholders expt in a few cases where these

two are not the same. For example, a holder of a share warrant is a shareholder but not a member of the company. On the other hand, a deceased

person is a member so long as his name is on the Register of Members whereas he cannot be termed as a shareholder.