CHANGE IN SHAREHOLDERS

Hi all

In case of a private limited company having two shareholders, upon sudden death of one of the shareholders what happens to the share capital of the company?

Shares cannot be transferred by way of an agreement because of the death of the shareholder

Does his right in shares of the company gets transferred to his successor/s legal heirs?

if above is true what is the procedure for transfer of shares do we need to inform MCA?

Replies (2)
Quick Summary
This discussion addresses the crucial question of what happens to a private limited company's share capital when one of its two shareholders passes away. It clarifies that the deceased shareholder's rights in the company's shares typically transfer to their legal heirs or successors. The process involves specific documentation such as a succession certificate, will, probate, or indemnity, along with the nominee's rights if applicable, and compliance with the company's Articles of Association.

If nomination is applied thru rta then the nominee has the right to the shares.
Succession Certificate/ Will / Probate / Indemnity / NOC/ death certificate and application with specimen signature shall require ,you also have to comply procedure prescribed in AOA (if any ),Post transmission,endorsed share certificate will be issued and register will be updated ,no need to inform MCA,it's just a transmission only SHP will change

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