Notes On Distinction Between Share Certificate And Share Warrant:

1. Offer:

 Both public and private companies can offer for issue a share certificate.

  But a share warrant can be issued only by public limited companies.

2. Issue:

 A share certificate can be issued originally and even with respect to partly paid up shares.

  But, a share warrant cannot be issued originally and only fully paid up share warrant can be converted into share certificate.

3. Approval of the Central Government:

 The authority of Articles and approval of the Central Government is necessary for issuing share warrants.

  But, in case of share certificates, there is no such restriction.

4. Name and Address:

 The name and address etc of the share certificate holders are to be entered in the Register of Members.

  But, in case of share certificates, no such requirements are there.

5. Registration of Transfer:

 A transfer of share certificate needs registration of transfer with the company.

  But a share can be transferred by mere delivery.

6. Proof or Evidence:

 A share certificate is a prima facie evidence of the title.

  But a share warrant is a conclusive evidence of the title if the transferee is a bonafide holder for value.

7. Negotiable Instrument:

 A share certificate is not a negotiable instrument.

  But a share warrant is a negotiable instrument and hence the title of the bonafide transferee for value may be better than the transferor.

8. Rights of membership:

 The holder of the share certificate has all the rights of membership.

  But, a holder of a share warrant may or may not be given the full rights of membership by the articles.