Hi
Is there any provision for UNLISTED company, that
if the no of shares requested to be transmitted is less than 500,
or has total value below Rs.1,00,000,
The company can acknowledge the transmission on the basis of Affidavit and indemnity bond,
without insisting the succession certificate or probated will??
Pls reply soon...
Advance Thanks and regards
Hi, Dear Read this Section :
109b(1) Any person who becomes a nominee by virtue of the provisions of section 109A, upon the production of such evidence as may be required by the Board and subject as hereinafter provided, elect, either-
(a) To be registered himself as holder of the share or debenture, as the case may be; or
(b) To make such transfer of the share or debenture, as the case may be, as the deceased shareholder or debenture holder, as the case may be, could have made.
So. Board may decide which document is necessary if they feel they need not succesion ceti or probate they can transfer.
IF SHARES ARE RECEIVED FOR TRANSMISSION THEN SUPPORTING DOCUMENTS MUST REQUIRED TO BE ATTACHED WITH APPLICATION.
ON THE BASIS OF SUCH DOCUMENTS ONLY, BOARD CAN DECIDED WHEATHER TO TRANMIT THE SHARES OR NOT.
Dear Khusbu Pls read language of law : upon the production of such evidence as may be required by the Board and if we analys this part that is to better
so.
It is descreation on Board which document is necessary for transmission.
Hi Yogesh Sir and Khushboo Madam
I wanted to know if special 'relaxation of documents' provision is there?
I came to know that normally, we need the probate or succession certificate along with the other documents like Transmission form and request, indemnity bond, affidavit and NOC of the other heirs....
Actually where is it said in companies act that so and so documents are required.... I think this is the normal succession procedure?
Needed a confirmation from the learned members of the process required.
(No of shares involved here = 500 nos of FV Rs.10 each,
Company has less net worth than paid up capital)
Dear Lucifer,
AS i mention provision u can read that it mention it is descreation on board which document is necessary so board need not that cerificate and they are satisfy on ther personal ground and personal relation than they can transfer. but if any problem occured after trasmission or it might wrong transmission then they will be default so it is better to confirm by all necessary evidence and then go through for transmission.
Plz find herewith attached SS_6 Issued by ICSI
SECRETARIAL STANDARD ON TRANSMISSION OF SHARES.
It wll solve your query fully
Dear Khusboo.
AS is not mandatory and applciatble yet.even same is mention in AS that :
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.
I hope now concept might clear.
CAclubindia
