The holder is made to advertise the loss in newspapers and to g is ean indemnity bond. as welt as gnararltce, before he is issued a duplicar warrant.
DUTIES OF THE SECRETARY RE ISSUE OF SHARE WARRANTS
The steps to be taken by the secretary in connection with the issue oshare warrants may be enumerated as flows:
(i) He has to check Qp the Articles to End out whether tkey prosed for issue of share warrants.
i'.CORPORATION OF A COMPANY l97
Or. exeipt Of the , he has to check and the applications, get the share warrant fortes filled up and ready for sealing and signature.
I) After the filled up share warrants have been up by the cotnpany's auditors, he has to see that a Board meeting is convened to pass a resolution the sealing of the warrants, their signing by one or more directors and the secretary and their issue by the secretary. :
(t'ii) After the share warrants Ihavc been delivered, he has to see tile names of such members are struck off the Register of Members and necessary panicolars are entered therein (Sec. 115).
(viii) He has also to see that the warrant forms are kept in safe custody to prevent their misuse.
DISTINCTION BETWEEN SHARE CERTIFICATE AND SHARE WARPAN r
A share certificate differs from share warrant in many respects:
2. Share certificates can be issued in respect of parity paid-up shares as v all as paid-up shares. A share warrant can be issued onL paid up share.
3. A nominal stamp duly is payable on the issue of share certificate. But the issue warrant requires payment of a he .9- stamp duty.
4. A share ocrtt fi cale canbe transferred by the of an ir strt;ment of transfer and tLte regiSIMtiOn of transfer by the company through a Board resolution, and it requires necessary changes to be made in Register of Members. A share warrant is transferable by mere delivery by one holder to ar other.
200 K!NG'S: SECRETARIAL PRACTICE
3. Past losses (otlter tram those caused N the pros isi an for depredation) of the company need not necessarily be made good befc,re the paNment of the dividends out oftlte currentprofits
4. Dividends sltnll be paid oulN in cash except NO here theN are adjusted towards paying up mtpaid amount on share held tile members of the companv
S. Auy idend payable in cash mav be paid by cheque or dividend w arrant posted to the registered address of the sit.treboliiers or in the case of joint shareholders, to the registered address of the fit st named on the register of members, or to such person and to such address as the shareholder or tile joint shareholders tnav in writing direct.
6. Divider.ds sltall be paid in proportion to the paid up on each share.
7. No dividends shalt be payable on advance payment of calls unless authonsed by the articles.
8. N idcnds shall be paid onlv to registered shareholders (i.e., whose names appear on the register of Members on the date when dividend is declared) or their orders or to their bankers, or in case of holders of share Warrants to the bearers thereof or to their bankers.
9. Dividends must be paid with fortv days or the idled w arrants in respect thereof must be posted with the above time, from the date of the declaration. If dividend are not so paid, every director, managing director or manger of the company who is knowingly a party to the default shall be punishable with simple imprisonn,ent for a term which mav extend to seven days and shall also be liable In the follcnving case. however, they Will not be held liable:
N where the dividend could not be paid N reason of the operation of any law (e g., dividends have been freezed).
(b? where a shareholder has given directions to the conmpanv regarding H?e payment of the dividend and those directions cannot be complied with.
2L?2 'S: SECRETARiALPRACTICE
(1) Whcre a dividend is declared,