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1.  Share Certificate
A number of important particulars will be set out in a
share certificate issued by a company. Among other
particulars the following details will be set out in a
share certificate:-
1) The name of the company,
2) The name of the share holder
3) The number of share included in such share certificate
4) The distinctive numbers of the shares included in such share
certificate, and
5) Whether the share fully paid or partly paid and the amount, So
paid.
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3.  Share Warrant
Share Warrant is a document issued under the common seal of the
company stating that the bearer has the number of shares specified
there in it is a negotiable instrument and it can be transferred by
mere delivery.
It requires approval of central government before it is issued
A private company can not issue a share warrant.
The bearer of the warrant is not a member of the company.
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5. Share Certificate Share Warrant
 A bearer of share certificate is
entered in the register of members of
the company.
It is not a negotiable instrument.
It can contribute towards
qualification shares held by a director.
It is a registered evidence of title.
Issue of share certificate does not
require approval of central
government.
• Bearer of a share warrant is not
entered in the register of members of
the company.
•It is a kind of interest and ownership
of the company.
•It can not contribute towards
qualification shares held by a director.
•It is a bearer a document of title.
•It requires prior approval.
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6. Insider Dealing
The illegal buying and selling of shares in a company by people
who have special information because they are involved with the
company. There have inside information,
 That information is price-sensitive in relation to shares.
They deal in those shares, or encourage someone else to deal in
those shares or pass inside information to another person.
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7. Type of Shares
Preference Shares Ordinary Share
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8. It offers a fixed rate of dividend.
Right to get capital on winding up, before
anything is paid to equity shareholders.
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9. Type of Preference
Shares
 Cumulative Preference Shares
 Non - Cumulative Preference Shares
 Participative Preference Shares
 Redeemable Preference Shares
 Convertible Preference Shares
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10. These share have voting rights.
It doesn’t offer a fixed rate of return.
They are not entitled to get capital on winding up,
before paying to preference shareholders.
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02.Ordinary Shares

11. Different Between of Ordinary Shares
& Preference Shares
Ordinary Shares Preference Shares
 Can get company
ownership.
 Can participate the
organization control.
 Have more risk.
 Rights to get vote.
 Can’t get the specific
dividend.
 Can’t get company
ownership.
 Can’t participate the
organization control.
 Have less risk.
 Not rights to get vote.
 Get the specific dividend.
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12. Solomon VS Solomon company
case…
Solomon was a leather merchant who
converted his business into a limited company as
Solomon & company limited. The company so formed
consisted on Solomon, his wife & five of his children as
members. The company purchased the business of
Solomon for $ 39,000 the purchase consideration was
paid in terms of $ 10,000 debentures conferring a charge
over the company’s assets, $ 20,000 in fully paid, $ 1
share each & the balance in cash.
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13. The company in less than one year ran into
difficulties & liquidation proceedings commenced. The
assets of the company were not even sufficient to
discharge the debentures. And nothing was left for
unsecured creditors. The liquidator on behalf of
unsecured creditors alleged that the company was a sham
& mere alias or agent for Solomon.
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