Transmission of shares
This query is : Resolved
Chandan Gupta
(Querist)
18 July 2012
Dear Members,
Please provide a detailed procedure of "Transmission of Shares" and what are the documents to be used in same procedure.
Thanks...
Please provide a detailed procedure of "Transmission of Shares" and what are the documents to be used in same procedure.
Thanks...
Ajay Mishra
(Expert)
18 July 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.
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.
Charu Srivastava
(Expert)
18 July 2012
Do check whether the shareholder has made any nominee or not.In case of nominee the Share will get to the Nominee.
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