Private limited company

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CA Shreya Chudasama

CA Shreya Chudasama (Querist)
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16 March 2012 Please inform me what to do for share transfer if shareholder of a private limited company dies.

Jiten Gupta

Jiten Gupta (Expert)
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16 March 2012 Here you need to transmit the Shares to His/Her legal heir as per his will!!

In case there is no will left by the deceased then to any one member of his family provided NOC is obtained by other heirs!!!

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Ajay Mishra

Ajay Mishra (Expert)
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16 March 2012 Hi

Requirement of documents for transmission of shares:

Where title to shares comes to vest in another person by operation of law, it is not necessary to execute and submit transfer deed. A simple application to the company by a legal representative along with the following necessary evidences is sufficient:—

(i) Certified copy of death certificate;
(ii) Succession certificate;
(iii) Probate;
(iv) Specimen signature of the successor.

However, requirement of these certificates is not essential and depends on various circumstances of the case. Where a succession certificate has been granted in respect of shares, the company cannot insist on the production of probate or letters of administration; the certificate affords full indemnity to company. [Thenappa Chettiar v Indian Overseas Bank Ltd. (1943) 13 Comp Cas 202 (Mad)].

Since the transmission is by operation of law, neither consideration for transfer nor stamp duty is required on instruments for transmission.

Regards

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CA Shreya Chudasama

CA Shreya Chudasama (Querist)
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16 March 2012 If the person has no legal heirs and dies then what has to be done for transfer of shares ??