Shares
K.EDUKONDALU
(Querist) 05 October 2011
This query is : Resolved
Thank you sethi sir
how can get succession certificate.For this we two brothers required to go to court sir. plz help me sir
ajay sethi
(Expert) 05 October 2011
the problem is your father has made your brother as nominee . since your brother is nominee he will inherit all shares . bombay high court has held that under section 109 A of companies act nominee to demat account gets the shares and not other legal heirs
Guest
(Expert) 05 October 2011
Agree with Shri Ajay Sethi.
Arun Kumar Bhagat
(Expert) 05 October 2011
Nominee acts like a trustee. Nominee has to disburse the trusted property to the legal heirs. Nominee can not be exclusive beneficiary.
prabhakar singh
(Expert) 05 October 2011
No Mr.Arun Kumar Bhagat!
It is not a general nomination case.
It would be governed by section 109A of company Law which reads "109A. Nomination of shares.
1[109A. Nomination of shares.—(1) Every holder of shares in, or holder of debentures of, a company may, at any time, nominate, in the prescribed manner, a person to whom his shares in, or debentures of, the company shall vest in the event of his death.
(2) Where the shares in, or debentures of, a company are held by more than one person jointly, the joint-holders may together nominate, in the prescribed manner, a person to whom all the rights in the shares or debentures of the company shall vest in the event of death of all the joint-holders.
(3) Notwithstanding anything contained in any other law for the time being in force or in any disposition, whether testamentary or otherwise, in respect of such shares in, or debentures of, the company, where a nomination made in the prescribed manner purports to confer on any person the right to vest the shares in, or debentures of, the company, the nominee shall, on the death of the shareholder or holder of debentures of, the company or, as the case may be, on the death of the joint-holders become entitled to all the rights in the shares or debentures of the company or, as the case may be, all the joint-holders, in relation to such shares in, or debentures of the company to the exclusion of all other persons, unless the nomination is varied or cancelled in the prescribed manner.
(4) Where the nominee is a minor, it shall be lawful for the holder of the shares, or holder of debentures, to make the nomination to appoint, in the prescribed manner, any person to become entitled to shares in, or debentures of, the company, in the event of his death, during the minority"
SO SECTION 109A(1)GOVERNS THE PROBLEM IN HAND AND THE SAME IS CRYSTAL CLEAR NO CITATION IS A NECESSITY TO FORM ANY VIEW.
THE WORDS..... nominate,...............,a person to whom his shares in, or debentures of, the company shall vest in the event of his death.NO AMBIGUITY IS THERE AT ALL TO HOLD TWO OPINIONS.
Raj Kumar Makkad
(Expert) 05 October 2011
Nothing requires to be added in detailed reply of prabhkar singh.
