Dividends.

Forgery.

118

SECRETARIAL PRACTICE
must bear on each one the serial number of the warrant to
which they belong. A talon (see Form 40) should be provided
for the issue of fresh coupons when the original series is ex-
hausted. It is usual for the secretary’s facsimile signature
to be printed on the coupons and talon.

When a dividend is about to be paid, arrangements should
be made for the coupons to be received and paid, usually at
the company’s bankers, or at the offices of the company.

The exact amount payable on the whole of the shares
represented by the share warrants in circulation should be
transferred from the general account to Coupon No......,
Account with the bankers.

It should be noted that shares represented by share warrants
cannot be reckoned in the qualification of a director or
manager of the company, where such a qualification is
required by the articles [s. 141 (2)].

A contract to sell registered shares will not be satisfied by a
delivery of share warrants [Iredale v. General Securities
Corporation (1916), 33 T.L.R. 67].

S. 2 of the Forgery Act, 1913, details the penalties to
which a person will become liable if he forges or otherwise
alters any share warrant or coupon with intent to defraud, or
falsely and deceitfully personates any owner of a share
warrant or coupon. (See also s. 71 of the Companies Act, 1929,
as to the penalties for impersonation and s. 72 as to the
penalties for forgery and kindred offences in Scotland.)

Share warrants are more popular on the continent than in
England, the majority of companies issuing warrants being
those whose shares are dealt in abroad, and it is not uncom-
mon for the terms on the warrants to be printed in two
or three languages in parallel columns for the convenience
of the foreign holders.

Coupon Registers should be kept in which the payment of
coupons can be recorded. The coupon listing forms are
numbered consecutively and the corresponding number
written or stamped against the numbers of the warrants in
the coupon registers.