shares n ar ts to convert file share certificate mto a share n arrant. he has to nake a request or printed application form to fdle company along with the re share ce.t ficate. K e has also to deposit the stamp duty and ci her prescribed fees and charges On receipt of the duly completed application fonn, the secretary's erp office sends ajar dgement clret to the shareholder concetned ac:knowledgh the receipt of the documents and stating therein that. this is to be exchanged for Lte share warrant later Ibe secretary now looks to it that all the relevant provisions ofthe Companies ActrelaLng to the issue of share warrants are dulyconfonned to On being satisfied, he issues of share warrant(s)
Share warrant forms are usually- printed in three parts, one being separated from the outer by perforation: (i) the counterfoil, (ii) the Share Warrant proper, and (iii) the Dividend Coupons. A 'talon' for demanding a fresh set of dividend coupons, when those attached to the warrant Kave been exhausted, is also provided therein. These fonns arc con plated by the secretary's erp office, and a tweeting of the Board of Directors is con cued to pass a resolution for coaling and signing of the warrant(s). Accordb.tgly, the sltare warrants are sealed and signed and the applicants are advised ov a circ.lia. letter to take delivery of the warrants from the registered erp office of the compar.y m exchange for Lie Lodgement Tickets
(a) the fact of tile issue of the warrant;
(b) a statement of rho shares specifi cd in the warrant, uishir g each share by its number, and'
(c) the date of the issue of the warrant [Sec. 115(1)].
2. By virtue of Section 115(5) the bearer of share warrant may or may not be gr nil d al I the rights of membership. As SUCil. if the Articles so provide. he mbe to be a member to the extent and for the purposes definec in the Articles. His of nienibership aresuallycurtailed, e.g., he can ZOt present a petition for the winding up of the cornpany. He may not be granted tile right to general rneehngs: the right to vote, etc. 3 The share warrant will not constitute the qualification shares for the directors, ode is imposed by the Articles.In other v ords a holder of share warrant cannot qualify himself for the appointment of a director : 4. T he Amlual Return I give particulars of share warrants.
DIVIDENDS ON SHARE WARRANTS
Section 114(1) expressly authorizes the company to provide for the pavme i. of di idends on the slraie warrants by attaching coupons for dividends with the warrants. Dividend is paid tothepersonwhoptesents that appropriate coupon The company advertises in the newspapers the serial numbers of coupons doe for getting the dividend. A 'talon' for demanding a fresh set of dividend coupons, when llhose at;d to the ivarrant have been exhausted, is also rovidci!
PROCEDURE FOR ISSUE OF DUPLICArE WARRANTS
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