09 June 2012
A share warrant is a bearer document of title to shares and can be issued only by public limited companies and that to against fully paid up shares only.
A share warrant cannot be issued by a private company, because the share warrant states that its bearer is entitled to a number of shares mentioned there in. It is a negotiable document and is easily transferable by mere delivery to another person. The holder of the share warrant is entitled to receive dividend as decided by the company.
A share warrant is accompanied by attached coupons for the payment of future dividends.
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