Shraddha Singhi (Company Secretary) 24 February 2014

Who will be the owner of the shares of deceased

Case: Shares held jointly by two holders. out of which one die. Who will bhe the owner of those shares?

legal heirs of the deceased or the other person jointly holding the shares.

As of now the joint holder has applied to the company to issue fresh certificates to issue in his own name only. What about heirs of deceased. Is there any way out for them to claim the value of deceased?

Thank you in advance.

regards,

S. Singhi

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5 Replies

Law Aspire (Legal) 24 February 2014

The second joint holder will be the owner of the shares after death of first Joint holder.

Regards

Rachit Inani

CS LLB

Shraddha Singhi (Company Secretary) 24 February 2014

Thank you Mr. Rachit. But why the legal heirs of the deceased are not owner.
If you explain more about it, or any remedy available.

regards,

S. Singhi

Shraddha Singhi (Company Secretary) 24 February 2014

Thank you Mr. Rachit. But why the legal heirs of the deceased are not owner.
If you explain more about it, or any remedy available.

regards,

S. Singhi

Law Aspire (Legal) 24 February 2014

In Ram Govind Misra Vs.Allahabad Theatres Pvt Ltd(1989) 66 Com Cases 358(AI) the court hed that :
The Questionn of Legal representative of deceased holder becoming entitled to shares arises only in case of Sole shareholder. Heirs of deceased joint holder cannot become holder of such shares by virtue of Regulations 25 of Table A of Schedule I..

Regards

Rachit Inani