Death of director :: procedure

Pvt ltd 1675 views 4 replies

Aronyo

Self

51 Points Joined April 2011

Respected Members,

There are four founder directors in a Private Limited Co who are also the only share holders namely A, B, C and D. The shares of the company are 100% subscribed at a ratio of 25% for each of the directors. Director A has died less than a month ago.

Now, the company doesnot need to appoint an another Director otherwise its mandatory by the Law.

I would like to know :

1. Is it mandatory by the Law to appoint an another Director in the place of the the Ex Director A ?

2. What procedures are to be followed for the ROC and other Govt. Departments ?

3. What is the procedure to transfer the shares of the Ex Director A in the name of B, C and D ?

Early replies form the learned members in easy language is highly appreciated.

Replies (4)

SUSHIL KUMAR SHARMA

COMPANY SECRETARY

246 Points Joined March 2011

File form 32 for cessation of the director due to death and transmit the shares of the deceased director to his/her nominee or legal heir.

Nothing else to do.

It is not mandatory to appoint another director in place of deceased director.

Aronyo

Self

51 Points Joined April 2011

Originally posted by : SUSHIL KUMAR SHARMA
	File form 32 for cessation of the director due to death and transmit the shares of the deceased director to his/her nominee or legal heir. Nothing else to do. It is not mandatory to appoint another director in place of deceased director.

Respected Mr. Sharma,

Thanks for your early reply. Thats really helpful.

But you might have missed my third question, "What is the procedure to transfer the shares of the Ex Director A in the name of B, C and D ?"

Mind to reply ?

K S Dhingra

Consultant

22 Points Joined May 2012

The shares of A cannot be transferred in the name of B, C and D unless they are the only legal heirs. Otherwise, the shares will devolve upon the legal heirs who may transfer them to B, C and D in proportion they deem appropriate.