Nomination of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2015 Dear Sir,

My company(A.Pvt.ltd.) holder of Equity shares of another company(B.Pvt.ltd.)and now A. Pvt.ltd want to nominate C. Pvt. ltd. as nominee for the share held by them

IS it possible????
as per rules only person can be nominated so, here person mean what???

Any holder of securities of a company may, at any time, nominate, in Form No. SH.13, any person as his
nominee in whom the securities shall vest in the event of his death.

Pratik Shah

Pratik Shah (Expert)
Follow

25 August 2015 Nomination has two meanings for the purpose of Companies Act.
1. Section 72 - In case of Death
This section applies only to Individuals (human beings) because only human beings can die. A Company can not die. Hence, your case is not falling under this provision.

2. Section 187 - Investment to be held in its own name
This section applies only to a company. Actually, this is restrictive provision which says that a company can hold property/securities only in its own name and not otherwise.

There is one more Section 89 which mandates to file Declaration if a person is holding shares on behalf of Beneficial Owner. This applies to every person.

Considering above, A Pvt Ltd can not nominate C Pvt Ltd, unless you are qualifying for first proviso of Section 187(1) of Companies Act.

I hope this clears your doubt. Let me know if still have any doubts.

Thanks

Subscribe my page on Google+:
https://plus.google.com/u/0/b/107266775490040625732/+CSPratikKShahPracticingCompanySecretaryMumbai/posts

Facebook Page:
https://www.facebook.com/CSPratikKShah

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

BALU RAJADURAI

GOVIND VAJIRAJ DESAI

Shraddha Pangam

AKCJ INFO

Narendra

Subscribe Now

Nomination of shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA