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| Share Certificate and Share Warrant |
Share Certificate Section 113
Every company issuing shares must
issue share certificate within 3
months of the allotment this period is 2 months where the shares are
transferred. In this case if the company commits a default the company and its
directors are liable to punishment which may be 2 years imprisonment or fine of
Rs. 5000 per day of the default or both.
Section 114 and 115 Share
Warrant:
- Share warrants are bearer instruments and these are issued by any company to the shareholders so that the share warranty holder may easily transfer the shares to some other person.
- By way of share warrants it becomes easy to transfer the shares because registration of warrants is not required.
- The warrant holders do not have voting rights and warrant holders cannot attend the meeting of the company. They are not shown in the register of the company.
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