vasu (student) 13 December 2011

Heirs unknown

There's a company X. It got merged with a company Y. Now the person who was a shareholder in X has to get replica no. of shares in Y. Now the company comes to know that the shareholder is dead. Is there any legal provision which talks about such condition. The deceased person hasn't left any will or something. The allotment is necessary. Also, if we send a legal notice and there's a family dispute, what are we supposed to do? Also, in case the legal heir comes after 10 years to claim the shares after settling family disputes, what should be done?

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4 Replies

adv. rajeev ( rajoo ) (practicing advocate) 13 December 2011

co., has to give the shares to legal heirs of the deceased or inaccordance with the court decree if any.

DISHA D. SHAH (lawyer) 13 December 2011

i think company can allot shares as named in heirs certificate if heirs can submit other option can take bond for future liability from heirs who come forword to take shares , allot them

vasu (student) 13 December 2011

dear disha mam,

what do you exactly mean by future liability?

the legal heirs are unknown and there has been no such adress that could be used for sending a legal notice for allotment of shares. the nominee wants to transfer those shares in name of the deceased only.

the situation is problematic and a bit wierd.but pls provide some suggestion.

Shantilal Pandya ( Advocate) 08 March 2012

Sir

you can also file an interpleader suit prayibg therein that the rightful heir be declared as real allotee of the shares and in default the state as allotee by escheat , such a suit should be filed in the representative form through public notice

Regards