Legul Position of ..Share Warrunt Holder

Legul Position of ..Share Warrunt Holder. When a sbare warrant is issued in respect of any sbares, the name of shareholder is struck out from the

register of members, and the following particulars are entered in the register:

(a) the fact of the issue of the warrant:

(h) a statement of tbe shares specified in the warrant, distinguishing

each share by its number; and

© the date of the issue of tbe warrant. [Section 115(1)]

The holder of a share warrant is not strictIy a member of the company,

but the articles generally provide that the holder of a share warrant should be treated as a member of the company and can attend tile company meetings

and have voting rights. In such a case, the warrant holder bas to deposit the share warrant with the company at least two days before the meeting. The

receipt of depositing the warrant empowers tbe warrant holder to attend and vote at the meeting. He can get back the warrant after returning the receipt

rSec. 1I5]. The holder of share warrant cannot qualify bimself for the appointment of a director.

Dividend on Shure Wiarnmt. Sec. 114 (1) expressly authorises the company to provide for the payment of dividend on sbare warrants by attaching