779[F1Prohibition on issue of new share warrants and effect of existing share warrants]U.K.
(1)A company limited by shares may, if so authorised by its articles, issue with respect to any fully paid shares a warrant (a “share warrant”) stating that the bearer of the warrant is entitled to the shares specified in it.
(2)A share warrant issued under the company's common seal or (in the case of a company registered in Scotland) subscribed in accordance with the Requirements of Writing (Scotland) Act 1995 (c. 7) entitles the bearer to the shares specified in it and the shares may be transferred by delivery of the warrant.
(3)A company that issues a share warrant may, if so authorised by its articles, provide (by coupons or otherwise) for the payment of the future dividends on the shares included in the warrant.
[F2(4)No share warrant may be issued by a company (irrespective of whether its articles purport to authorise it to do so) on or after the day on which section 84 of the Small Business, Enterprise and Employment Act 2015 comes into force.]
Textual Amendments
F1S. 779 heading substituted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 84(2), 164(3)(g)(ii)
F2S. 779(4) inserted (26.5.2015) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 84(1), 164(3)(g)(ii)