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Transmission of shares

SAJAD (company secretary) (90 Points)

07 January 2014

what is the procedure of transmission of shares in pvt company without leaving a nomination

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4 Replies

umaa's legal clinic (simple solutions for complex legal issues) (165 Points)
Replied 07 January 2014

Dear Sajad,

1. Fill the form specified, if any, by the company.

2. Enclose : share certificate

will deed, if any,

succession certificate

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CS Arjun Rajagopal (B.com, ACS) (1056 Points)
Replied 07 January 2014

Transmission of Shares should be effected by the company on receipt of intimation of death of a Member and on production of necessary documents,
such as -
(i) Death certificate;
(ii) Request for transmission signed by the legal heir(s) / Legal
Representatives /claimant(s) with their specimen signature(s);
(iii) Succession Certificate or Letter of Administration or Probate of
Will;
(iv) Original share certificate(s);
(v) Orders of the Court or of competent authority, if applicable;
(vi) Permission under the Foreign Exchange Management Act, 2000,
if applicable.
The company may require documentary evidence to prove the identity of the legal heir or other claimants, such as PAN Card, Passport, Ration Card, Voter’s Identity Card, etc. The documentation required for effecting Transmission of other securities
including fixed deposits would remain the same. To facilitate transmission of Shares in appropriate cases, the company may waive production of certain documents, such as Probate or Letter of Administration or Succession Certificate. However, in such cases, the company may insist on a suitable Indemnity and affidavit. Section 109 provides for transfer of the Shares by the Legal Representative of the deceased Member. Section 109A provides for nomination by an individual in respect of his Shares. Where a Nominee has been appointed, the Shares shall vest in the Nominee on the death of the Member. As per Section 109B, on death of the shareholder, the Nominee has the option to elect either to register himself as the holder of the Shares of the deceased or transfer the Shares to any other person. The transferees need not be the legal heirs of the deceased shareholder(s). Similar rights are available to a person becoming entitled to Shares consequent to the insolvency of a Member in cases of companies having provisions akin to Regulation 26 of Table A of Schedule I to the Act in their Articles.

Transmission of shares held singly without nomination

Where a sole shareholder who has not appointed a Nominee dies leaving a Will, the company should on receipt of written request from the Executor or beneficiary named in the Will accompanied by the certificate evidencing the death of the shareholder and the Probated Will, register the Shares in the names of those persons who are entitled to the Shares as per the
Will within a period of 30 days.

Hope my explanation is clear and precise to you. Revert me for any further clarifications.

Regards,

Arjun Rajagopal

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