Business Studies

Which of the following statements is true?


ANSWER

A person having share warrant is only a shareholder of the company and not a member


SOLUTION
Share warrant is a bearer document of title to shares and can be issued only by public limited company against fully paid shares. It is a negotiable instrument which is transferable from one person to another by mere delivery. On issue of warrant, it is mandatory for company to strike off name of member from its register of members and holder of warrant is merely a shareholder to the company and he is the one who not only faces the risk  of losing the warrant but also enjoys benefits arising out of it.
Therefore, A person having share warrant is only a shareholder of the company and not the member.
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Single Correct Medium Published on 18th 08, 2020
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