Transmission of shares based on a "will"
Guest
(Querist) 18 July 2016
This query is : Resolved
Mr. X has asked XYZ Ltd.,a company located in West Bengal to transmit the 1000 shares held by Mrs. Y her mother (since deceased) under folio no. 23540 in physical mode. The status of the deceased as per their record is Resident. She has made the "Will" in the year 1987, when she was residing at Middlesex (London). On the basis of the said "Will", the Court of Ontario,Canada has issued Probate in favour of Mr.X.
Can XYZ Ltd.transmit the shares on the basis of the said Probate?
Kumar Doab
(Expert) 18 July 2016
Did Y register any nomination?
It is noted that the status of deceased is 'Resident' as posted by you.
However now a probate granted by a Foreign court has appeared on record.
The probate granted by a foreign court has to be recognized by Indian court and upheld for administration of properties/estate located in India.
Courts in India are empowered to examine the decisions of a foreign court and/or reconsider the decisions of a foreign court, if there are legal infirmities in said judgment.
Foreign judgments if bad are not binding in Indian Courts and enforceable in India.
As per local laws of Ontario,Canada the original WILL might have been deposited in the Probate Court.
The Indian court may accept the probate granted by foreign court;Ontario,Canada, and may agree for Ancillary probate.
If Indian court does not accept the probate granted by foreign court;Ontario,Canada, and find or raise questions related to the validity of the WILL then the court may decide to dwell upon such questions OR infirmities before permitting the administration of property/estate located in India.
Ancillary probate/Letter of Administration from India Court may be the option.
The regulator SEBI has provided for threshold value upto which the transmission can be held without probate subject to submission of requisite documents upto satisfaction of registrar.
looking into the facts posted by you and as mentioned above it is felt that XYZ may approach a very able counsel specializing in such matters for a considered opinion.
Kumar Doab
(Expert) 18 July 2016
You may go thru:
http://www.lawyersclubindia.com/experts/Transmission-of-shares-without-probate-of-will--601546.asp
http://www.lawyersclubindia.com/forum/Transmission-of-shares-without-probate-of-will-139561.asp
R.K Nanda
(Expert) 19 July 2016
Nothing to add .
Guest
(Expert) 19 July 2016
Mr. Maitra,
You are a very experienced retired professional Company Secretary & General Manager(Law). But here you have neither made a mention of any problem nor your own opinion, having long been associated with company law affairs.
If you really have any such problem, not being some academic query, you may better discuss here frankly.
Secondly, was there any specific reason that the will was got probated from Ontario (Canada) instead from any of the probate courts of London or India?
Also please don't forget, in what way you are concerned with the present case.
So far as the opinion of Shri Kumar is concerned, although he has tried to guide you to the maximum possible, but I happen to differ a bit with him, probably that may be a crucial point about foreign will.
Kumar Doab
(Expert) 19 July 2016
I am admirer of wisdom of Learned Senior Expert Shri P.S.Dhingra.
I have posted as per limited understanding from matter in query and subject.
I intend to gain from enriching discussion in this thread.
The author may post in reference to the points raised in this thread.
Shri P.S.Dhingra, has already pointed out that the author is a learned man and expert in his field. The author can post insights in the matter for an enriching discussion and response by Shri P.S.Dhingra.
If possible for me I shall post my views.
Guest
(Querist) 19 July 2016
This was not an academic query but a practical problem faced by a NRI shareholder.
Whatever information I got from him, based on that I asked for expert views on the query.
Instead of pinching me by referring to my designation, which I held prior to my retirement, Mr. Nanda
could have asked supplementary question.
This was not expected from him.
Kumar Doab
(Expert) 19 July 2016
Apparently the deceased owner was at Middlesex (London) and beneficiary at Ontario,Canada.
