Lakshmi Shukla Trivedy (Director ) 01 July 2013
There are three partners in a private company - First - 60% second - 40% (senior citizen- mother of thrid director) and third director has 0% stake. What happens when second director expires without any will (she has total 5 children including third director who has 0% stake?
Adv Archana Deshmukh (Practicing Advocate) 01 July 2013
The 40% shares of the 2nd director will devolve upon her 5 children and the 3rd director's stake in the company shall raise from 0% to 8%.
@ Lakshmiji,
In case of private limited company, it depends on teh proviions of teh articles of associaton, cuz the reight to transfer or vests shares is on the approval of the board of directors.
In case of a public company, again it depends, quite often qualification shares are to be transferred to other directors at proce as deteremined based on valuation done by company
In case of listed company, its based on nomination if filed, or succession certificate/will provided.
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