transfer of shares

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Shikha gupta (Querist)

06 October 2010 what is the procedure for transfering the shares to the legal hiers in case of death of the shareholder in a private limited company

Ankur Garg

Ankur Garg (Expert)

06 October 2010 Requirement of documents/evidences 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 alongwith the following necessary evidences is sufficient:—

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

No requirement of consideration and payment of stamp duty

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

Ankur Garg

Ankur Garg (Expert)

06 October 2010 Procedure for transmission of shares

(i) The survivors in case of joint holding can get the shares transmitted in their names by production of the death certificate of the deceased holder of shares. The company records the particulars of the death certificate and a reference number of recording entry is given to the shareholder so as to enable him to quote such number in all future correspondence with the company.

(ii) If a member of a company dies and he leaves after him a will or letter of administration then the survivors shall get a copy of 'will' certified under the seal of a Court of competent jurisdiction. The certified copy of the will is called a 'probate' and it shall be forwarded to the company.

(iii) If a member of a company dies without leaving a will, then succession certificate issued by a Court of competent jurisdiction shall be submitted to the company.

(iv) In case a member of a company becomes bankrupt, the official receiver shall produce documentary evidence of his appointment from a competent Court.
Right to dividend, rights shares and bonus shares to legal representative shall be kept in abeyance

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