Nischitha B 06 September 2021

Death of the director

Hi,

My husband died due to covid recently.
He was one of director and shareholder of the private limited company.
He was sole earner of the family.

1. My husband had taken a loan from his relative on his name and transferred to company . That amount is mentioned in the balance sheet under unsecured loan section.
Can the relative who knew about this, has the statment proof can avail this amount with intrest as per mutual agreement.

2. Since he was sole earner, we didn't get any thing from the company. They don't even have insurance.
Can we claim for compensation and medical bill reimbursement? If yes how much compensation can I claim as per law and medical expenses.
Is it based on director remuneration?

3. Is there link between his unsecured loan, directorship and shareholder?
Bcoz the managerial director mentioned if nominee want to continue her shares in the company , the unsecured loan shouldn't be taken back.
Can shares and directorship be inherited to his legal heirs

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Quick Summary

Following the recent death of a company director and shareholder due to COVID-19, his widow is seeking guidance on several matters. She needs to understand if a relative who loaned money to the company in the deceased's name can reclaim it with interest. Additionally, she is inquiring about potential compensation and medical bill reimbursement for her husband's death, given he was the sole earner and the company lacked insurance. The discussion also touches upon the link between the unsecured loan, directorship, and shareholding, and whether shares and directorship can be inherited by legal heirs.

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Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 06 September 2021

yes. Nominee can have rights over the shares of deceased. Image result for nominee rights of a share holders dies intestate A nominee (pursuant to a nomination by the deceased during their lifetime) acts only as a trustee on behalf of the rightful legal heirs, holding any property until the matter of succession or inheritance has been decided under law.

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Nischitha B 06 September 2021

Can you please help me with point 1 1. My husband had taken a loan from his relative on his name and transferred to company . That amount is mentioned in the balance sheet under unsecured loan section. Can the relative who knew about this, has the statment proof can avail this amount with intrest as per mutual agreement.

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