Issue.

Exchange.

Annual
Return.

116

SECRETARIAL PRACTICE
without being duly stamped, is the managing director, secre-
tary or other principal officer of the company, shall be liable
to a fine of £50.

The requirements of the articles of association with regard
to the affixing of the seal should be strictly followed in the
case of share warrants.

On issuing a share warrant, the name of the registered
holder must be struck out of the register of members as if he
had ceased to be a member, and the following particulars
entered therein:

(a) The fact of the issue of the warrant.

(b) A statement of the shares [or stock] included in the

warrant, distinguishing each share by its number.
The date of the issue of the warrant [s. 97 (1)].
These requirements may conveniently be carried out
by using a rubber stamp, which may be impressed
on the right-hand side of the accounts concerned in the
register of members, the latter being posted from the
entries in the share warrant issue register referred to
above, the distinguishing numbers of the shares being
entered in the proper columns of the register of mem-
bers, as if the shares were being transferred out of the
member’s name.

In view of the importance of safeguarding issues of war-
rants, the applications and cancelled share certificates are
sometimes examined by the company’s auditors and the
share warrants checked and initialled by them, before sub-
mission to the Board for issue and sealing, the auditors
giving a certificate that the warrants are in order and duly
stamped.

When ready for delivery the warrants should be issued
in strict accordance with the instructions upon the application,
and a form on the lines of Form 42, may be usefully employed
for this purpose.

The necessity may arise for dealing with applications for
the exchange of share warrants of certain denominations
for warrants of other denominations, and for this purpose a
form similar to Form 50 may be used and the receipt issued
by the company upon the lodgment of such an application
with the warrants for surrender may be on the lines of Form 43.

The only direct information given to the Registrar of
Companies regarding the issue of share warrants by a
company is contained in the annual return and summary.
In the return the issue of share warrants in exchange for