Upgrad LLM

shareholding rights after death


Dear respected lawyers,

My father has shareholdings in Indian companies that he had invested in through his company. He had put his brothers names as joint shareholders as well. Sadly, he has now passed away suddenly and did not write a will. As per Indian law, can someone please advice me as to what happens to his shareholding. Would this automatically be passed onto the next of kin ie my mother? If so, how do we go about this as we are worried that his brothers may not give us our entitled share.

Please could someone advise us. Your advice would be greatly appreciated as we are really in need.

 

 
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ha21@rediffmail.com Mumbai : 9820174108

1. IF the names in the Share Certificate /Demat Holdings are those of Father and his Brother, THEN legally it will be construed that Father & Brother each have 50% right /stake on such Share Holdings.

2. Serve a Legal Notice /Caveat to the "Indian Co." restraining them from making any type of Transfer of said Share Holdings.  

3. Since Father has not left any WILL document, file a Civil Court case for directions to transfer the Father's share holding (50%) in name of Mother.  Nothing is "automatic" in law and due procedures of law must be followed.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

 
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LEGAL

SInce the shares are in the name of your uncles and father,so you can claim only the share of your father not those of uncles.

You get a succsession certificate and transfer the share of your fahter in the heir's name.

 
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Retired employee.

Do not wait to discover some medicine when the disease is not known and there are strong symptoms, contact an expert to get a remedy.   In other words, do not take the risk, depending on the value of the shares, contact a local advocate and immediately take action for including of your mother's name as joint holder or for splitting those shares in your mother's name independently.  (For example if there are 100 shares in joint name, you can demand for 50 shares exclusively in your mother's name).  Always trust for councelling and mediation.

 
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LEGAL COUNSEL

As per the Companies Act, in case of a joint holding the shares upon death of a joint holder automatically devolve on the surviving joint holder(s). There has been ample case laws where this right of joint holders under the Companies Act and the Artciles of Association of a Company, which is binding on every shareholder is upheld. The best resolution would be dispute resolution outside court

 

 
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Thank you for your advice. If we can settle this outside court, can you advise what document can be drawn up to allocate 50% shares in my mothers name and 50% in brother?

 

 
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Retired employee.

Seek original transfer deed for such shares in individual names and for individual shares in the name of legal heirs as per compromise.  The chain is broken and individual shareholders can deal with those shares as they like.

 
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Thank you - how do I seek original transfer? who shall I contact?

 
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Retired employee.

You need not contact any outsiders.  The person that is having such shares in his name can use transfer deed or digitally transfer the shares.   You can contact any local brokering forum for further guidance.  All this if the other party is willing to consider for your demand for your share in shares.

 
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Advocate

If a joint shareholder dies, the shares pass automatically to the remaining joint holder(s) rather than, as with any property not held jointly, according to the deceased's will or the law of intestacy

 
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