56.       Shares include stock
The Company may issue share warrants with the previous approval of Central Government and subject to and in accordance with the provisions of Section 114 and 115 of the Act and subject to the provisions of the Foreign Exchange Management Act, 1999 and accordingly the Board may in the discretion, with respect to any share which is fully paid-up on application in writing signed by the person registered as the holder of the shares and authenticated by such evidence (if any) as the Board may from time to time require as to the identity of the person signing the application and on receiving the certificate (if any) of the share and the amount of stamp duty on the warrant and such fee as the Board may, from time to time require, issue under the Company’s Seal a warrant duly stamped stating that the bearer of warrant is entitled to the shares therein specified and may provide coupons or otherwise for the payments of dividends or other moneys on the shares included and specified in the share warrant.

57.       Effect of issue of the warrant
On the issue of a share-warrant the Company shall strike off in the Register of Members the name of the member entered therein as holding the shares or stock specified in the warrant as if he had ceased to be a member and shall enter in the register the following particulars, namely:

  1. The fact of the issue of the share warrant;
  2. A statement of the share or stock included in the warrant distinguishing each share by its number; and
  3. The date of the issue of share warrants


58.       Right of the bearer of share warrants
A share warrant shall entitle the bearer to the shares included in it and the shares may be transferred by the delivery of the share warrant and the provisions of the Articles of Association of the Company with respect to transfer and transmission of shares shall not apply thereto.

59.       Right of the holder of share warrant to call meeting

  1. The bearer of the share warrant may at the office of the Company and so long as the warrant remains so deposited, the depositor shall have the same right of signing a requisition for calling a meeting of the Company and of attending and voting and exercising other privileges of a member at any meeting held after the expiry of two clear days from time of deposit, as if his name was inserted in the Register of members as the holder of the shares included in the deposited warrant
  1. Not more than one person shall be recognized as depositor of the share warrant.


  1. The company shall, on two days’ written notice, return the deposited share warrant to the depositor.

60.       Privilege of holder of share warrant
Subject to provisions as hereinbefore otherwise expressly provided in Article 57, no person shall, as bearer of a share warrant, sign a requisition for calling a meeting of the Company and attend or vote or exercise any other privilege of a member at a meeting of the Company or be entitled to receive any notice from the Company; but the bearer of a share warrant shall be entitled in all other respects to the same privileges and advantages as if he were named in the Register of members as the holder of the shares included in the warrant and he shall be a member of the Company.

61.       Effect of surrender of share warrant
The Board may from time to time make rules if it shall think fit as to the terms on which a new share-warrant or coupon may be issued by way of renewal in case of defacement, loss or destruction.

62.       Renewal of Share Warrant
The bearer of a share warrant shall, subject to the Articles of the Company be entitled, on surrendering the warrant to the Company for cancellation, and on payment of such sum as the Board may from time to time prescribe, be entitled to have his name entered as a member in the Register of members in respect of the shares specified in the warrant.


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