SHARE WARRANTS

115
or guarantee society, and only then after most exhaustive
investigation and proof that it has been lost beyond recovery.

Condition 14 gives the form of the certificate to be delivered
to anyone depositing warrants in accordance with Condition
13, and forms of this certificate may, when printed, be bound
in book form with a counterfoil to each (see Form 41). The
issue of this certificate requires to be carefully controlled and
each form should bear a separate folio number. As a safe-
guard in the use of this form the following words should
always be added at the foot, viz.: ‘Importani—The warrants
named herein will be delivered only in exchange for this
certificate, which must be carefully preserved.’

Subject to the articles of association the fees referred to Fees.
in Conditions 5, 12 and 16 may be fixed by the Board.

A specimen form of application for share warrants is given
in Form 42, and upon such a form being completed and
handed in to the company’s office together with the share
certificates and fees payable, the company would issue a
receipt (see Form 43).

In recording the issue of share warrants three types of
registers are usually required as follows:

(1) Particulars of share warrant applications received
and details of the warrants issued in respect thereof
‘see Form 46).
(2) Particulars of applications received for the ex-
change of warrants into registered shares, giving details
of the warrants surrendered (see Form 47), and
(3) The serial number of every warrant printed with
columns in which to enter the distinctive share numbers
inserted on the warrants (see Form 48).

In addition to the foregoing a stock book should be kept Stock Book.
recording all the warrants printed and a summary of all
warrants issued, so that at any time it may be possible to
ascertain full details of the warrants remaining in stock.

Before execution of a warrant, stamp duty thereon must
be paid by means of an impressed stamp at three times the
ad valorem duty payable upon transfers of shares, that is to
say, at the rate of £3 per cent. on warrants issued on and after
1st September, 1920, the duty being calculated upon the
nominal value of the shares or stock comprised in the warrant
(Stamp Act, 1891, Schedule 1, Section 1). The stamp duty
must be impressed before the warrant is executed.

it is provided by the Stamp Act, 1891 (s. 107) that any
person who, at the time when a share warrant is issued

Stamp Duty.