Transmission of shares

Software Professional

My grandfather owned a chunk of shares in a reputed textile mills. He had 3 sons (one being my father) and 4 daughters. When my grandfather passed away, his children, being the legal heirs, decided to split equally the shares as 7 and got the necessary transfer certificates ready. Unfortunately, my father passed away before the documents could be sent to the mills. He has already signed in the documents. My relatives want to proceed with the already existing documents and are then asking me to contact the mills and transfer it to my mother's/my name. Kindly advise me on how to proceed on the same. Is it lawful to transfer shares in the name of a deceased or should a new set of documents be made ready? If not lawful, kindly point me to sections of acts/documents so that I can quote those references to talk to my relatives.

 
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PROPRIETOR

Dear Mr. Ajit,

 it would not be proper to transfer the shares in the name of your deceased father. While all other transfers are valid, shares / inheritance, pertaining to your father should go to his heirs ( say like what you did for your grandfather).

 
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Software Professional

Thanks Mr Dahake for your reply. But the shares are not yet in the name of my father. It is still the name of my grandfather. In the process of transferring shares from my grandfather's name to my father's name, my father passed away. So is it that all the documents have to be rewritten to get the shares in my father's heirs name now itself or can the transfer continue? I don't want to get into legal consequences by doing something unlawful.

 
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PROPRIETOR

Dear Mr. Ajit,

 Only the part pertaining to your father has to be explained / documented or rewritten.

 
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PRACTICING COMPANY SECRETARY

Documents required for Transmission of Shares

:In case of transmission of sharesby operation of law, it is not necessary to execute and submit transfer deed. A simple application to the company by a legal representative along with the following necessary evidences is sufficient:—

a. Certified copy of death certificate;

b. Succession certificate;

c. Probate or will;

d. Specimen signature of the successor.

 

 
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