Death of Director and Shareholder of Private Company

A private Limited Company has 2 Directors (husband and wife) and both of them are also the shareholders of the Company. The husband died suddenly. I had the following queries :

1. How do we appoint a new Director since there is only one director left in the company

2. What happens to his shareholding. In whose name will it transmit. The son is a minor.

 

Replies (1)

1. As per Section 174(2), the other director (wife) may call a board meeting / pass a CR only for the appointment of another person as an additional director.

 

2.A minor cannot apply for transmission of shares in his name. Only recourse available here is to transmit all shares except one of deceased person in his wife s name and remaining one share in the name of some other close relative/trusted person. ( Ensure to do this within 6 months of death of the shareholder )

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