Bijoy (Tax adviser) (95 Points)
08 February 2011A private limted company had only 2 directors ( the same persons were shareholders also).
One of them expired. The expired legal director's legal heirs are his wife and 3 sons.
What is the procedure for effecting transmission of shares and in what ratio?
Hindu Succession Act having any relevance here in allotment?
What are the forms to be filed with ROC?
Jaideep
(Service)
(1368 Points)
Replied 08 February 2011
Hi Bijoy,
Following will solve your query.
What is the procedure for getting shares in the name of surviving shareholder(s), in the event of death of one shareholder?
The surviving shareholder(s) will have to submit a request letter supported by relevant share certificate(s) and an attested copy of the Death Certificate of the deceased shareholder. The Company’s R&TA on receipt of the said documents and after due scrutiny will delete the name of deceased shareholder from its records and return the share certificate(s) to the surviving shareholder(s) with necessary endorsement.
If a shareholder who holds shares in his sole name dies without leaving a Will, how can his legal heir(s) claim the shares?
The legal heir(s) should obtain a Succession Certificate or Letter of Administration with respect to the shares and send a true copy of the same, duly attested, alongwith a request letter, transmission form, and the share certificate(s) in Original, to the Company’s R&TA for transmission of the shares in his / their name(s).
In case of a deceased shareholder who held shares in his / her own name (single) and had left a Will, how do the legal heir(s) get the shares transmitted in their name(s)?
The legal heir(s) will have to get the Will probated by the Court of competent jurisdiction and then send to the Company’s R&TA a copy of the probated copy of the Will, alongwith relevant details of the shares, the relevant share certificate(s) in Original and transmission form for transmission of the shares in his / their name(s).
No need to file any form with ROC.
Regards Jaideep Pandya
CAclubindia
